Annual Report 2011

Annual Report & Accounts for the year ended 30 April 2011

Cambridge on the internet An interactive PDF version of this Annual Report can be downloaded from our website at www.cambridge.org/annualreport.

For more information about Cambridge University Press and our products visit www.cambridge.org.

Cover artwork: Illustration of Jerusalem by J. Ogilby from the reissue of 1660 of John Field’s large folio edition of the Authorized Version, or King James Version, of the Bible.

The 400th anniversary of the King James Bible was celebrated in 2011, and the Press has the longest association with it of any publisher, having first printed an edition in 1629.

Annual Report & Accounts for the year ended 30 April 2011

Contents Executive Summary

7

Chief Executive’s overview

8

Chief Operating Officer: some reflections

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Publishing programme

13

Academic and Professional Books

13

Cambridge Journals

16

Cambridge Learning

18

Business Services

23

The Press in the Community

25

Appendices

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I. Statistical data May 2010 to April 2011

28

II. Awards and Prizes

32

III. Statute J The University Press

37

Annual Accounts

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Executive Summary This past year has been the most testing in a decade, in terms of the development of the Press’s business. Nonetheless, progress continues, though at a lesser pace than previously. Our revenue growth bears testament to the wisdom of the decisions taken in the late 20th century to diversify into the Learning business and overseas markets. The Press continues to be well served by exposure to a range of currencies and to the world’s developing markets, which have shown far greater resilience to the economic downturn than the Press’s more traditional markets of Europe and North America.

Principal financial performance indicators for the year ending 30 April 2011 were as follows: •• Net Incoming Resources before Transfers were £7.1 million, up 154% on the 2010 figure of £2.8 million (which was adjusted for an accounting policy change).

•• Revenues rose to £237.3 million, an increase of 11.3% over the previous year. After making allowance for the helpful effects of foreign currency movements, underlying revenue growth was 8%, a performance with which any publisher would have been very satisfied against the difficult economic background.

•• The Academic and Professional publishing business had a very strong year, with exceptional contributions from North America and from digital product sales.

•• The Journals group now offers a stable of 275 titles, with revenues growing by some 54% over the past four years. This is a fine outcome for a group that has simultaneously maintained a reputation as one of the most pragmatic collaborators with the Open Access movement and achieved a significant improvement in impact factors for many of its titles.

•• Digital products, including Cambridge Books Online (CBO), Cambridge Journals Online (CJO) and titles designed for e-book readers, have made a serious impact for the first time. In particular, CBO delivered some £3.1 million of new business revenues. Notwithstanding these developments, the Press will continue to service the demand for its publications in printed form, as well as electronically, for as long as public demand exists.

•• English Language Teaching, while advancing less rapidly than in previous years, still delivered an impressive increase of 9%, bringing its total growth over the past five years to 102%.

•• Following last year’s large increase in net post-retirement liabilities, that figure improved somewhat and ended the year at £89.6 million.

The entire publishing industry is in the throes of the greatest revolution since the invention of moveable type. The advent of the digital age brings with it the need for significant investments in back-office systems and in new digital products. The costs of these investments, together with associated changes in the organisation, and the need to meet future liabilities of the Press pension schemes, represent a substantial challenge.

As a final note, the launch of Cambridge English, a joint product with our colleagues in Cambridge Assessment, is to be welcomed and will hopefully be followed by further collaborative projects. < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

Chief Executive’s overview The progress of recent years continues – though at a lesser pace. That will hardly be a surprise to most people, bearing in mind the extraordinary economic difficulties being faced by the Press’s home country and by many of our key markets, notably the United States, Europe and Japan. On the other hand, both our revenue growth and the improvement in our profitability bear testament to the wisdom of my predecessors’ decision to diversify into the learning business and foreign markets. We continue to be well served by exposure to a range of currencies and to the world’s developing markets, notably China, India and Brazil. These countries have demonstrated that they are indeed the opportunity areas of the future, while others, such as Australia and South Africa, have shown far greater resilience to the world’s financial woes than those of us in the northern hemisphere.

Revenue in the year to 30 April 2011 rose from £213.3 million to £237.3 million, an increase of 11.3%. Even after making allowance for the helpful effects of foreign currency movements (some 8%), underlying growth was once again very pleasing, when compared with the difficult experiences of many of our competitors. But growth did not necessarily come from the traditional quarters.

ELT, whilst still an impressive 9%, did not advance at the same rate as in previous years, though this is hardly surprising, bearing in mind that its sales volumes have now increased by some 102% over the past five years.

By contrast, the Academic and Professional publishing business had a very strong year, with 8

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exceptional contributions from North America, which has seen a strong recovery in its business, and from online product sales, which made a serious impact for the first time.

Cambridge Books Online (CBO) delivered some £3.1 million of new business revenues, though these will inevitably have reduced the prospects of printed publications, a phenomenon which must now be anticipated as the world becomes inexorably digital.

A particular cause for delight was the performance of our Journals business, which has grown by some 54% over the past four years.

During that time, no journal has been lost to a competitor, and the Press now provides 275 titles to institutional libraries. This is a fine outcome for a group that has simultaneously managed to maintain a reputation as one of the most pragmatic collaborators with the Open Access movement. The success story was not purely financial, however: it was also about the significant improvement in impact factors recorded by many of our journals, testifying to widespread recognition of the quality and integrity of the Cambridge Journals list.

New media Our digital service, Cambridge Journals Online (CJO) and its counterpart for books, CBO, illustrate how dramatically the publishing industry has moved in the past year. The public enthusiasm for e-book readers, and therefore for e-books, has been widely reported in the news media, with more trade titles being sold in electronic form in the United States than in hard copy.

Chief Executive’s overview

The e-book reader is not a significant delivery medium for the Press’s publications, where the principal customers are academic libraries with networked systems. But all these devices tell the same story: that the printed products with which we have become so familiar are in decline and are being displaced by digital versions at a far faster rate than most commentators had predicted.

Nonetheless, Cambridge University Press continues to service both print and electronic markets, and will do so for as long as there is public demand for print. We regard it as one of the responsibilities of a major university press to service the requirements of the scholarly and educational communities and we are fortunate in having at our disposal an increasingly impressive range of digital printing devices that are capable of offering readers printed books on demand, without the risk to us of printing for stock. Our Cambridge Library Collection (CLC) is evidence of the viability and popularity of this approach. As a business, print on demand offers the considerable benefit of enabling us to reduce our physical stock holdings and thereby release cash for reinvestment in the many costly developments that are necessary as we move further into the digital arena.

Another consequence of digital developments worldwide is the fact that we have recently sold high-value contracts to educational authorities in Switzerland and Turkey. In both cases, the advent of technology has enabled us to offer an approach to teaching the English language which goes far beyond anything that was available in the 20th century. We have come a long way in the development of online and blended materials, and it is a matter of pride that the Press won

those huge contracts against fierce competition from far larger competitors, just as we did in winning the confidence of the Laureate group of universities. Meanwhile, in the high school arena, the Press has increased its investment in HOTmaths, an Australian company with a fine online mathematics product, which is showing great potential across the international stage. Due to continued investment costs in developing the product for market, the value of goodwill which arose on the initial acquisition has been impaired in the 2011 accounts. However this is a product that demonstrates the direction in which education is moving, and it will undoubtedly be a model for many others.

This is a new type of theatre in which we are striving. It requires new skills from our staff, and a new approach to guiding and supporting our customers. It is a popular truism that you don’t need to teach adults how to read a book, but you do now need to teach them how to operate this new generation of digital products, and how to get best value from them. So the world of the educational publisher has evolved into a mixture of traditional publishing, systems selling and pedagogical advisory services. This can only be good for Cambridge University Press and the whole Cambridge family. Between us, we have a unique range of capabilities.

Other developments And yet, the printed book remains in widespread demand. Our planet will move into the digital era at a range of different speeds. It is self-evident that those who can ill afford the communications infrastructures, notably on the African continent, will continue to rely on print for many years to < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

come. There can be no better example of the demand for traditional books than our recent sale to the newly founded Anna Library in Chennai, India, which acquired from the Press some 35,000 of our titles this year. We were thrilled to be able to meet their requirement! Similarly, we have been delighted by the response to the opening of our newest office/showroom in southern India, at Thiruvananthapuram (previously Trivandrum).

In the Far East, the Press has encountered mixed fortunes. Japan has been going through a difficult period of adjustment, which was aggravated by the appalling effects of the tsunami that struck in March 2011. The effects on the Japanese economy – and indeed on many of its export markets who depended on Japanese technology – have been noticeable. Across the sea in China, however, the Press’s influence and business grows daily. We are very pleased to be helping China in the development of its domestic publishing industry and in its efforts to introduce a better understanding of its culture to the western world.

The Press’s people We have not lost sight of the fact that publishing is essentially a people business. We value our global team highly – they now number almost 2,000 people worldwide – and we mourn every death amongst our colleagues. During the past year, we have lost Ashley Gooden from our Cambridge staff, Manish Amte from India, Clyde Young from Cape Town and Stella Tan from Singapore. In the US, Euan ‘Tim’ Phillips, a former Director of our North American Branch, died recently; and we have lost a great friend in Italy, in 10

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the form of Riccardo Botrini of Loescher, our distributor in that country. All of them will be sorely missed.

At the same time, we have been pleased to welcome many new colleagues to our ranks, including two new Syndics, Professor Cathie Clarke and Sir David Bell, and Mr Nick Temple and Mrs Joanna Womack as co-opted members of our Syndicate Audit Committee. Professor David McKitterick has taken over as chair of the Publishing Committee. Our gratitude goes to Professor Tom Körner, who has rendered long and invaluable service to the Syndicate: we wish him a more peaceful life!

Amongst the Officers of the Press, we also bade farewell to Ron Bennett, the Head of our Legal Services. Ron has been a splendid friend and professional: it’s hard to imagine how we ever made do without an in-house solicitor! A key addition to the team has been Peter Phillips, who joined us as Chief Operating Officer and who is now leading the process of putting the Press into a condition to realise all the opportunities offered by this brave new digital world. May he make up for all my own deficiencies!

We tender our best wishes to Professor Dame Alison Richard, whose term as Vice-Chancellor came to an end during this past year, and we welcome her successor, Sir Leszek Borysiewicz. To both, we offer our sincere thanks for the trust they have placed in the Press, its Syndics, its Officers and staff. I sincerely hope that we shall continue to merit that trust.

Finally, it is with great regret that I must also recognise the retirement of our Chancellor of many years, HRH The Prince Phillip, Duke of Edinburgh. He, too, has always showed an

Chief Executive’s overview

interest in our work, and we were recently honoured by him with a visit to our site. On behalf of all of us at the Press, I wish him an extremely enjoyable retirement.

Stephen R. R. Bourne Chief Executive

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Cambridge University Press Annual Report and Accounts 2011

Chief Operating Officer: some reflections Cambridge University Press has made a significant contribution to advancing learning, knowledge and research over the last four centuries. To this day, that remains our purpose and goal.

The quality of our output is exemplified by the large number of authors of global importance who have chosen to publish with the Press: from Isaac Newton, John Milton and William Harvey through Erwin Schrödinger, James Maxwell and Ernest Rutherford to Umberto Eco, Noam Chomsky and Amartya Sen. The yardstick for all our publishing, for schools and language teaching as well as academic books and journals, remains the academic excellence and global reputation of our University and its exam boards.

We are proud to be the world’s oldest continually operating publisher. At the time the Press was granted its Letters Patent by Henry VIII in 1534, communication in Europe was being transformed by the consequences of the invention of moveable type some ninety years earlier.

Almost every conversation I have had with customers and colleagues in my first few months with the Press has emphasised that publishing is undergoing its most profound period of transformation since our organisation was founded. This revolution is being driven in large part by the increasing power and ubiquity of digital communications and computing throughout the worlds of research and learning.

These changes are affecting what our users need and expect. They are breaking down the barriers between markets. And they are 12

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fundamentally changing the nature of business models which have in many cases remained largely unchanged for centuries.

The Press has already responded with the development of an outstanding range of digital products and services, including Cambridge Books Online, Cambridge Journals Online and Touchstone Blended Learning. As a result our brand continues to carry real weight around the world, and the Press has almost doubled in revenues over the last five years.

Despite that success, we cannot afford any complacency. The scale of the change which our industry faces is huge. The Press is competing with organisations many times its size. Yet I believe passionately that we must continue to increase – not reduce - the positive impact the Press has in this rapidly shifting world. That will require new forms of content and new types of services for our customers, and new technology and ways of operating for the Press. To do that, we will need to invest more – probably more than at any point in our long history.

The Press is not a purely commercial organisation. Our financial performance is not an end in itself. But financial success is critical to our future. It is what will enable us to invest.

And with that investment we will be able to continue to increase our contribution to learning, knowledge and research in the coming decades – just as we have since the 16th century.

Peter Philips Chief Operating Officer

Publishing programme

Publishing programme Academic and Professional Books The strategic aim of the Academic and Professional books group continues to be to work with a global community of authors, editors and contributors to produce high-quality, peer-reviewed material that meets the needs of students, researchers and practitioners around the world and to do so within a sustainable financial framework that also makes a contribution to the University.

In pursuit of this aim, the group enjoyed arguably its most successful year this century, with global book revenues rising by 13% to £77 million. Against a worldwide backdrop of continued economic uncertainty, sales in the EMEA region (Europe, Middle East and Africa) rose by 8%, while in the Americas some recovery from the recent recession was experienced with sales in dollars rising by 9%.

The fastest growing regional sales sector was Asia-Pacific, where revenues rose by 24%, boosted by the sale (worth over £1.25 million) of one copy of every extant Cambridge academic title to the new Anna Centenary Library in Chennai, India. As a proportion of overall academic book sales, the Asia-Pacific region now stands at 19%, the Americas at 44%, and the EMEA region at 37%. This changing regional pattern contrasts with the proportionate split between Humanities and Social Sciences (H&SS) and Science, Technology and Medicine (STM) academic sales revenues, which for the past four years has remained the same: H&SS accounts for 64% of the global whole and STM for 36%.

A major driver of growth in FY2011 was the successful launch of Cambridge Books Online (CBO), the electronic platform announced in last year’s Report and now fully operational. A natural complement to Cambridge Journals Online, and with a similar focus on research dissemination, CBO helped e-book sales to grow from £3.1 million in FY2010 to £6.22 million in FY2011, representing 8.2% of academic books as a whole. During FY2011 CBO was primarily a monographic platform. As such it helped to drive the year’s most counter-intuitive statistic and to render academic monographs in the humanities and social sciences the fastest growing publishing category of all, with sales of £15 million, 24% up on FY2010. Literature, law, economics and anthropology were the most e-centric subjects in sales terms, each with electronic sales representing roughly 12% of the subject whole. In territorial terms, Australia was the most CBO-hungry Press Branch, consistent with previous early adoption in both Australia and New Zealand of new modes of scholarly communication.

As in FY2010, much of this strong sales performance was driven by high levels of productivity. Overall, 1,625 new titles were published, a decrease of 6% on the previous year but still the second-highest total in the Press’s history. The efficient delivery of this quantity of titles, to the highest standards of design and manufacture, is a tribute to the skill and dedication of the group’s production staff.

Ever-increasing usage of short-run digital print technologies also facilitated the continuing < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

importance of backlist publications to the group’s overall sales profile. Backlist sales in FY2011 represented 72% of the whole, the highest percentage so far and a significant driver of increased profitability.

Global sales of Humanities and Social Sciences (H&SS) books grew by 12% to £45 million, despite reduced publishing output.

1,107 new titles were published, 5% down on the previous year, partly due to the termination during 2010 of the book element of our distribution agreement with the Dutch law publisher Asser Press.

Subjects enjoying double-digit sales growth in FY2011 included history (up 15% to £8.87 million), law (up 20% to £5.45 million), politics (up 16% to £4.79 million), philosophy (up 14% to £3.41 million), language and linguistics (up 15% to £3.3 million), classics (up 12% to £2.55 million) and psychology (up 15% to £1.92 million). Growth in some of the (historically) smaller subjects was even faster, with management (up 49% to £1.06 million) and sociology (up 37% to £1.16 million) both performing particularly strongly. This performance reflected the strategic commitment to a steady stream of research monographs combined with upper-level undergraduate and graduate textbooks and scholarly reference. The latter are increasingly delivered in both print and online form, as university libraries (especially in North America) cease to acquire substantial academic reference projects in print form on any significant scale.

The publication highlight of the year was unquestionably the multi-volume, 4,929-page New Cambridge History of Islam, described by 14

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Noel Malcolm in the Sunday Telegraph as ‘a work of breathtaking scholarship that does justice to one of the world’s great religions’.

Other Cambridge histories published during FY2011 included The Cambridge History of Chinese Literature (in two volumes), The Cambridge History of African American Literature, The Cambridge History of the American Novel, The Cambridge History of English Poetry, The Cambridge History of French Literature, The Cambridge History of Philosophy in Late Antiquity (in two volumes) and the first volume in The Cambridge World History of Slavery.

Other significant works of scholarly reference were The Cambridge Dictionary of Christianity edited by Daniel Patte, The Cambridge Guide to Jewish History, Religion, and Culture edited by Judith Baskin and Kenneth Seeskin, and the first volumes in the Cambridge Edition of the Works of Virginia Woolf.

Two major and substantial illustrated publications with particular local resonance were catalogues of Western Illuminated Manuscripts: A Catalogue of the Collection in Cambridge University Library, prepared by Paul Binski, Patrick Zutshi and Stella Panayotova, and Italian Drawings at the Fitzwilliam Museum, prepared by David Scrase. Both volumes were produced in the very finest craft printing traditions of the University Press.

Works that enjoyed special media attention during FY2011 included The Mystery of the Last Supper by Colin J. Humphreys, Ireland: A History

by Thomas Bartlett, Sex Before the Sexual Revolution by Simon Szreter and Kate Fisher, The Changing Body by Roderick Floud, Robert

Publishing programme

Fogel, Bernard Harris and Sok Chul Hong, Global Warming Gridlock by David G. Victor, Big-Time Sports in American Universities by Charles T. Clotfelter, and The Cambridge Companion to Cricket edited by Anthony Bateman and Jeffrey Hill.

As the textbook programme continues to grow, new editions of best-selling titles will appear with increasingly regularity: the third edition of Peter Singer’s Practical Ethics, and the second edition of Damian Chalmers’ European Union Law, were among the most significant works of this sort to appear during FY2011.

Global sales of Science Technology and Medical (STM) books rose by 14% to £25.8 million, despite publishing fewer titles.

Publishing output fell by 7% to 518 new titles.

As with H&SS, stronger backlist sales are helping to reduce dependence on new publishing, with benign financial consequences.

There was significant revenue growth in FY2011 in almost all of our major STM areas including medicine (up 13% to £5.63 million), mathematics (up 12% to £4.61 million), life sciences (up 16% to £3.23 million), engineering (up 17% to £3.18 million), and earth sciences (up 11% to £2.7 million). Among the smaller subject areas, astronomy grew by 40% to £1.4 million.

Dr Matt Lloyd has transferred from Cambridge to New York as the scientific Editorial Director for North America: further development of the Press’s commissioning strength in STM is a major priority, in a highly competitive world market-place where Cambridge, as a relatively small player, must be fleet-of-foot in order to thrive and prosper. The entry costs of competing

effectively in STM are much higher than in H&SS subjects, with the possible exception of law. On the plus side, STM subject sales are, in the medium term, likely to benefit from increasing Asia-Pacific exposure, and Press editors are actively seeking partners, authors and projects in some of the world’s most vibrant scientific research communities in both India and China.

Major publications in medicine and the life sciences during FY2011 included the fourth edition of Prescriber’s Guide by Stephen Stahl, Discoveries of the Census of Marine Life by Paul Snelgrove, and Silent Summer by Norman Maclean. The last is a survey of the contemporary state of wildlife in Britain and Ireland, which received particularly widespread and favourable notices.

In maths and physics, both disciplines of historical Press strength, Cambridge publishing in 2011 was headed by the NIST Handbook of Mathematical Functions edited by Frank Olver et al., Networks, Crowds and Markets by David Easley and Jon Kleinberg, Information and the Nature of Reality by Paul Davies and Niels Gregersen, and Introduction to Quantum Optics

by Gilbert Grynberg et al.

The Press’s position as the leading publisher in earth and atmospheric sciences was again underlined, this time at the textbook level, by titles such as Structural Geology by Haakon Fossen and Geomorphology by Robert and Suzanne Anderson. The strong resurgence of the Press’s astronomy publishing in FY2011 was led by Galaxy Formation and Evolution by Houjun Mo et al.

Engineering is a subject with substantial growth potential, especially in the Asia-Pacific < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

Transetto Edition

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region where engineering sales now rival those achieved in Europe. Major titles in FY2011 included Thermodynamics and the Destruction of Resources by Bhavik Bakshi et al., Micro- and Nanoscale Fluid Mechanics by Brian Kirby, and the second edition of Computational Fluid Mechanics by T.J. Chung.

New publications in Bibles and Prayer Books reflected the Press’s historic and ongoing role as a publisher of the King James (or Authorized) Version, as the 400th anniversary of the KJV was celebrated in 2011. The classic Cameo Reference Edition was reissued in fine bindings, while The Authorised Version of the English Bible 1611 was added to the Press’s digital print-on-demand publishing programme.

The Transetto Edition, the first Bible in English to be produced in the innovative flipback® format, was published to reach a yet wider readership for the KJV as it enters its fifth century as the leading Bible version. Other titles which celebrated the 400th anniversary came from the Humanities group, including a paperback concise history of the KJB by David Norton and a collection of essays on the influence of the Authorised Version on later literature: The King James Bible after 400 Years, edited by Hannibal Hamlin and Norman Jones.

Sales performance across the major market segments continued the encouraging pattern of recent years: the UK and North America each achieved their targets despite the continuing economic difficulties experienced within the general and specialist Christian book retail environment. Special sales of editions to other organisations or societies included a significant sale of a custom NIV Bible in the Philippines, with < Return to Contents

an expectation of further orders in the future.

Overall, sales revenue grew by 9% and exceeded £1 million for the fourth consecutive year.

Cambridge Journals A record number of 29 new journals were acquired in FY2011. For the fourth year running, no journals were lost, bringing the total to 275. Over £35 million in sales revenue was generated globally, representing a 54% increase over the last four years.

The year brought tough market conditions, with a decline in traditional subscriptions, and retention has become a key issue. Nevertheless, Cambridge’s consortia business grew, with notable new business in mature and developing markets. This included the extension of national site licences in Germany and Japan and continued growth in Australia and China. In addition, the largest university in Mexico, Universidad Nacional Autonoma de Mexico, became a multi-site customer for the complete journals package. In India, Cambridge Journals had tremendous success in providing access to 600 colleges via a single consortium. Finally, JISC Collections, which is the UK Higher and Further Education funding council’s official procurer of digital content for education and research, purchased the Cambridge Journals Digital Archive of nearly 4 million pages for all UK Higher and Further Education institutions.

The year was marked by an exceptional amount of systems and IT development work.

An increasingly complicated online business requires numerous back-end systems to deliver a seamless experience for diverse user groups.

Publishing programme

It is also vital to keep the front-end up-to-date with continued innovation of the Press’s market leading publishing platform – Cambridge Journals Online (CJO). A brand new interface with additional functionality was launched, including mobile access, apps, cross-platform searching (books, journals, databases and other content), and a host of features for an improved user experience. The redesigned platform was thoroughly approved by journal customers.

Any publishing platform must be judged by its usage. In 2010 CJO received 180 million unique visits, a 22% increase on 2009, resulting in nearly 50 million abstract views of journal articles that led to over 13 million articles being downloaded. A key quality factor used in the journals publishing sector is that represented by the Journal Citation Reports (JCR), or impact factor, which is one measure of how relevant and useful articles are compared with those in comparable publications.

Cambridge Journals continue to rate highly in terms of usage and impact. The 2010 JCR ranked Behavioural and Brain Sciences number one for the 11th year running in the whole Social Sciences Citation Index (covering over 2,670 journals), and number one in the category of Behavioural Science in the Science Citation Index. Fourteen H&SS journals received their first impact factor in 2010, part of an overall increase of 23% for H&SS. American Political Science Review, published on behalf of the American Political Science Association, rose to number one in the Political Science category, with World Politics rising to number three in the International Relations category. The impact

factors of STM journals increased by an average of over 11%: Nutrition Research Reviews, published on behalf of the Nutrition Society, increased its impact factor by 137% and Behavioural & Cognitive Psychotherapy increased by 143%. Cambridge Journals top many categories and regularly outperform their categories by four or five times the average, and this year was no exception.

Two notable partnerships were developed over the year. The first was the relationship with EDP Sciences, the leading independent science publisher in France. A customised CJO enabled a fast and effective re-launch of their journals to the Press’s global customer network.

A further tranche of six titles will be added later this year. In 2011 the Press’s collaboration with the Materials Research Society commenced with the publication of their leading journals.

This involved the mammoth task of loading 900 volumes of back issues to launch MRS Proceedings, a unique database collection of materials literature. Early 2011 saw the announcement of the first new journal to be created from this publishing partnership – MRS Communications. This journal will use a sophisticated reviewing system to ensure rapid turnaround for short review communications.

Cambridge Journals now offers a hybrid open access model for over 120 of its journals and this year will see the launch of several fully open access journals in the areas of engineering, nutrition and neuroscience. New dedicated staff are being appointed to accelerate Cambridge’s participation in open access publishing. < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

Cambridge Learning

Cambridge ELT launched 25 Apps in the in Use series

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Supporting the Press’s purpose to advance learning, knowledge and research worldwide, Cambridge Learning had another pleasing year in which it attained many of its overall objectives, exceeding the previous year’s income by 10% and reaching £112.9 million in revenue.

Revenue from the English Language Teaching business grew by 9% to £86.3 million. The strongest performance came from the Americas region, which saw 24% growth, followed by 10% in Asia-Pacific. Growth in EMEA slowed and revenue was flat, due to a number of severe adverse market conditions.

The shape of the business has changed slightly during the year, with the Americas now accounting for 37% of the business compared with 32% last year; Asia-Pacific continues to represent 22%; EMEA is still the largest region but now accounts for 41% of the business compared with 46% previously.

A pioneer in educational solutions, Cambridge ELT is committed to innovation in learning and teaching. As a result it made significant advances in digital publishing. The publication of Touchstone Blended Learning, including interactive workbooks and flexible online courses at four levels, provides a pedagogical model capable of achieving the same learning outcomes for students both in the classroom and online.

The delivery of online and blended learning products is supported by an ongoing investment in the development of platform technologies, solution sales expertise and customer service capabilities. The Press is < Return to Contents

rapidly expanding its range of online products, with key grammar and teacher training titles moving from print to digital, following the path already laid by course book series. All ELT courses now include substantial digital components, offering a digital suite of options to customers according to their readiness to embrace the impact of technology in the classroom. Cambridge ELT is no longer primarily a ‘print publisher’, but a provider of ELT solutions delivered through a diverse range of media.

The Press is becoming well established as a publisher of mobile apps. Following the success of the Grammar in Use iPhone apps, Cambridge ELT has launched a further 25 apps across the in Use series, examination preparation titles, course book supplements, and pronunciation titles. The range will extend to other mobile platforms and device types.

English360, a delivery platform that offers content aimed at the Business English market, won the prestigious David Riley Industry Award for Innovation in Business English and ESP (English for Special Purposes).

The Press made some of its biggest-ever sales deals this year, several of which revolved around Touchstone. In Turkey, Cambridge Learning now supplies Anadolu University, which offers distance learning to the Turkish nation, with a unique print and online solution which allows them to train 1.7 million students over the next three years. In Spain, Cambridge ELT won the Catalan government tender to provide an online school for adult learners over the same timespan, including personalised tutoring. This represents another adaptation of

Publishing programme

Touchstone, and is a fine example for other Spanish regional governments to follow. Other major implementations were in China and worldwide via the international Laureate university chain with the majority of campuses in Latin America.

Overall, digital sales doubled in value, and are likely to increase even more aggressively in the future. Behind the scenes, the great achievement of Cambridge ELT has been to integrate successfully the sales, delivery, administration and support processes for blended learning to render this new business operable.

Very visible to customers, by contrast, is the Press’s close working relationship with Cambridge-ESOL (English for Speakers of Other Languages), the assessment organisation that is also part of the University. In FY2011 this strong link was demonstrated through branding, both partners defining their offering as ‘Cambridge English’. The result is that a Cambridge solution is offered to customers that includes both learning and assessment, integrating complementary specialisms and providing also curriculum design and teacher development of the highest quality.

Regional performances were affected by market conditions, and nowhere more so than in the Middle East where social unrest and armed conflict have temporarily stalled the distribution of learning materials, and learning itself in some cases. Given the depressed economies in Southern Europe it is creditable that Italian and Greek sales suffered less, while Spain surged ahead with a massive12% increase on the previous year. Over 30% of

sales by the Iberian Branch are now from products that they publish themselves, catering specifically to Spanish learners of English – something only the Press can do, thanks to its corpus of learner errors collected and analysed with Cambridge ESOL. In Asia there was strong growth in Indonesia and China. The Press’s well-established multi-office presence in China was rewarded by recording the biggest order ever for a single SBN, on publication of the eighth volume of practice tests for IELTS, another Cambridge ESOL examination. Books in both British and American English are sold across Asia, with certain countries and customers having distinct preferences.

India further consolidated its sales of dictionaries, grammars and exam preparation materials. Indian sales in all the three segments grew by more than 15% and FY2011 marked the beginning of sales of digital content in the country.

Another new development was the foundation of a new branch, Latin America North, with its head office in Mexico City.

Howard Siegelman was appointed as Branch Director for this region. Mexico had an outstanding year, with revenues increasing by 26%. After a troubled start, the new distribution hub that was set up in Panama is now running smoothly. The branch based in Brazil was extended to cover Chile, Argentina and Uruguay and is now called Latin America South. Joao Madureira is the Branch Director leading this region. Brazil had a sterling performance with 18% growth over the previous year. < Return to Contents

Touchstone has been at the centre of some of the Press’s biggest-ever sales deals

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Cambridge University Press Annual Report and Accounts 2011

Cambridge continues to pursue its aim to publish broadly across all product areas that support English Language Learners of any age, from the burgeoning population of primary school students, to adults learning academic and general English. There were 700 new ELT products published from centres in Cambridge, New York, Madrid, Singapore and Hyderabad, in addition to co-publications in China. Courses for the adult and school segments are the fastest growing. Following the Press’s strategy of publishing editions of best-selling titles tuned to the needs of key markets, Cambridge published a Korean edition of Basic Grammar in Use, a Touchstone Arab adaptation, and an e-Portfolio Asia edition of the new adult course English Unlimited. Iberia launched an English for Spanish Speakers version of the successful face2face course for adult learners. The publishing centres continued to adapt British products into American English, including two publications primarily targeted at Latin American secondary school markets: American English in Mind, a version of the successful English in Mind series by Herbert Puchta, and American More! Kid’s Box American English was launched for primary-age students.

In order to reinforce the Press’s market dominance in titles for adults learning English, a fifth level of Ventures was published. This is the flagship series for US adult education, which continued to gain market share as course sales increased by an unprecedented 45% over the previous year. The remaining levels of English Unlimited were published and further penetrated key markets. For students using the best-selling Interchange, Cambridge 20

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produced four levels of interactive Arcades, which enables students to progress from elementary to advanced levels of English by doing fun interactive exercises on their iPhone or iPod. Besides this, Cambridge continued its excellence in grammar publishing with a third edition of the landmark American English Basic Grammar in Use by Raymond Murphy, with a new interactive CD-ROM for students and Classware to support instructors.

For secondary markets, a new British English course for teens, Interactive, and an exciting digital homework program, Cyber Homework for More!, along with a second edition of Connect by Jack Richards were launched.

At the heart of Cambridge ELT publishing is its commitment to publishing cutting-edge methodology and applied linguistics titles that underpin and shape the pedagogy of the future. Examples of important titles added to this portfolio were Practice Teaching: A Reflective Approach by Jack Richards and Thomas Farrell, English Language Teaching Materials by Nigel Harwood, and a second edition of Teaching Pronunciation by Marianne Celce-Murcia, Donna M. Brinton and Janet M. Goodwin, the gold-standard text on pronunciation methodology. Cambridge also continued its participation and broad support of the English Profile project to support English language learning teaching and assessment, and continued its publication in print and online of Cambridge dictionaries.

The Education group had an exceptional year, growing by over 22% to achieve £26.6 million in revenue. Significant growth was achieved in local publishing in India and South

Publishing programme

Africa, 61% and 28% respectively. This growth more than offset some of the difficulties experienced in Australia during the year.

A highlight was the launch of the flagship HOTmaths product, an online maths teaching and learning resource for years 3 to10 connecting students, parents and teachers internationally, making maths meaningful and building confidence through success in learning. It was originally aimed at the Australian curriculum and has now been extended to cover the Cambridge International Examinations and more recently exam boards in India. There is well-researched evidence that HOTmaths improves maths performance, provides an effective, inexpensive home tutoring system that can be accessed anywhere via the internet and encourages independent learning.

A key focus for the International Education Unit in the last year has been the further development of new, high-quality blended product for the growing international examinations market, including IGCSE and A Level qualifications from the University of Cambridge International Examinations (CIE) and the International Baccalaureate Diploma Programme (IB). The Unit accelerated its output and launched 30 new titles, with Peter Lucantoni’s English as a Second Language series being the best seller for IGCSE, and significant success also for First Language English by Marian Cox and for Biology by Mary Jones et al.

This investment in new resources yielded an outstanding 52% growth in sales of CIE product (published from both Europe and India)

over the previous year and 23% for the International Baccalaureate Diploma. The MENA and Asia regions saw substantial revenue increases of 82% and 42% respectively, despite increased competition. In EMEA, despite some difficult markets, sales of Education product grew by 27%.

It was a turbulent year for the African Branch, but during the last quarter sales surged ahead and in the final analysis the results were exceptional. In South Africa, despite a national submission being cancelled and a new syllabus being released unexpectedly, sales ended the year significantly above last year’s. It was gratifying to note that growth came also from outside the South African market: sales in West and East Africa were also outstanding; new agents who were appointed in Kenya and Nigeria placed large opening orders, and successful tenders were concluded in Uganda, Tanzania and Rwanda. Sales ended the year 31% up on last year in the West and East African markets. Other highlights were the creation of fruitful partnerships to deliver online and mobile content and the launch of the African Branch’s own website.

In Australia and New Zealand Education sales showed only a modest increase due to the delay in the implementation of the Australian Curriculum and tough economic conditions created by several natural disasters, notably the major earthquake in New Zealand and floods in Queensland and Victoria. The decision to delay the Australian Curriculum forced changes to publishing plans, leading to a heavier than usual reliance on sales of older titles. The launch of the study-guide Checkpoints series < Return to Contents

HOTmaths was launched in Australia

21

Cambridge University Press Annual Report and Accounts 2011

for New South Wales has been largely successful and the Branch expects growth of this list in the next few years to rival the success of the Checkpoints series for Victoria.

Essential Mathematics for the Australian Curriculum for years 7 and 8 was launched, targeting early adopters of the Australian Curriculum. While this is still a small segment of what will be a large and lucrative market, the Branch has established a lead by securing over 50% of the available market. Half of these schools bought the Essential Mathematics/ HOTmaths bundle, which bodes well for this interactive online resource.

Of the individual Australian states, New South Wales was the best performer with sales increasing by 23% over last year; HSC Legal Studies (specifically for New South Wales) was the Branch’s overall top performing title.

Cambridge GO (Gateway Online) is a new portal for local schools product and support.

The site not only houses catalogue and product information but also acts as a password protected gateway to digital versions of course books, interactive books and supplementary materials for students and teachers.

In India the Education business increased by 61% over the previous year. This impressive growth is attributed to accelerated publishing for the local curriculum and deeper penetration into the education market. Notable additions in the locally published list are Click Start – an eight-level computer science series – and two mathematics textbooks for IGCSE. Delivering educational and language learning solutions of the highest quality worldwide to students, researchers and 22

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teachers remains the Press’s core commitment and provides a secure foundation to continue the rewarding growth that the Learning business has enjoyed over the past five years.

Business Services

Business Services Technology The year saw delivery of major systems and infrastructure to support the continued growth of digital revenues across the Press. Among the IT achievements were the following: •• new functionality for Cambridge Journals Online including a major redesign of the product, the addition of support for mobile devices and for major journals collaborations with the Materials Research Society and EDP Sciences; •• new business models and functionality deployed for Cambridge Books Online, which reached 11,659 individual titles and achieved over £3.1m in revenues with 10 million unique visits in its first full year; •• further development of the Cambridge Learning Management System, providing Touchstone online learning to 15 institutions worldwide, with 37,000 students enrolled and up to 1 million page views per day; •• successful creation of a global system for storing all editorial content across the Press, with over 16.3 million separate items being moved onto the system; •• continued deployment of a global Customer Relationship Management solution to support sales growth, rolled out this year to over 240 staff in 13 countries.

Within the Technology Group teams have been structured to improve project delivery, operational accountability and to increase the cross-functional partnership with the publishing teams. Plans have been laid for the future to replace the Press’s finance and

fulfilment systems, to further develop the online product platforms, and to implement a new rights and royalties system.

Legal Services Considerable legal input was required for the large ELT contracts with Anadolu University for Touchstone in Turkey and for the Swiss canton adoption of More! and English in Mind.

Agreements with Apple for e-Books and with Google for Google Editions were signed. Closer collaboration with Cambridge Assessment came in the form of an agreement governing use of the ‘Cambridge English’ strapline, and the Press’s legal officers continued to work with Cambridge ESOL to protect the brand worldwide. Action against piracy increased; terms of use were finalised for Cambridge Books Online; UK permissions income increased to £1 million; and the new role of Press Legal Counsel was created.

Cambridge Books Online

The Cambridge Bookshop

E x cellence

in

e - publishing

The Press Bookshop achieved total sales of £1.4 million, a 5% increase over the previous year.

Despite tough trading conditions on the high street, customers responded to creative window displays, price promotions and a January sale. Bestselling subjects were mathematics, British history, English language teaching, physics, English literature, politics, classics and philosophy.

The Learning Centre adjacent to the Bookshop completed a successful first year of trading. Education sales increased by 3% and < Return to Contents

23

Cambridge University Press Annual Report and Accounts 2011

ELT by 5%. Two seminars were hosted, encouraging ELT and Education professionals to discuss current philosophies. The first was on bilingualism, and the second on comparative judgement in marking examinations. Both were fully subscribed.

Pitt Building and Cass Centre These two business centres, which are available for outside events, both achieved increased occupancy during the financial year and provided a range of options for meetings, conferences, receptions, sport and leisure. The Pitt Building, offering a newly refurbished room, increased its revenue by 13% over the previous year and the Cass Centre by 2%.

Distribution The new distribution centre in Central America played a significant role in the Press’s business during its first full year. Service levels from the Press’s principal warehouses, in Cambridge and West Nyack, remained high. A combination of factors – shifts to digital production, manufacture and storage closer to market – contributed to a drop in physical throughput of 8% from these two main warehouses, even while revenues showed healthy growth.

In July 2011 (after the end of the Press’s reporting year) the Press announced that it was reviewing its distribution operations in Cambridge and West Nyack, and that it anticipated transferring its European warehousing to DHL Supply Chain by the end of calendar year 2011.

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Printing Cambridge Printing Services were busier than predicted for much of the year, and returned an unexpectedly high level of contribution. It became apparent that some equipment is requiring higher levels of preventative maintenance, but the completion of the new printing Management Information System and the continued accreditation to Forest Stewardship Council standards are signs that the business continues to be well managed.

Alongside these operational successes, there is evidence of continuing challenge for the printing business. As products are consumed and produced digitally, and as the Press continues to manufacture books closer to market (especially in the United States and Australia), it makes sense to keep the scale of the Press’s investment in its UK printing operation under close scrutiny.

The Press in the Community

The Press in the Community Environment Good environmental practice is at the heart of the Press’s commitment to being a responsible member of the community. The Press retained its registration to ISO 14001; greenhouse gas emissions for the Cambridge site dropped again, to 6,461 tonnes of CO2 equivalent, 13% below the level of the previous reporting year.

At the end of FY2011 the Press decided to lay a gas pipeline onto the Shaftesbury Road site, a move that should support significant further reductions for the next two years.

A Conservation Area was opened on the Cambridge site, developed in collaboration with the local Wildlife Trust and using staff volunteer labour, to provide a ‘Living Landscape’, a space where wildlife can thrive in increasingly urbanised surroundings.

Community Engagement Community engagement takes various forms in the different regions where the Press operates.

Here are some examples.

The volunteer programme in Cambridge involved 200 staff members who gave over 1,000 hours to local schools and environmental programmes. Opportunities for volunteering were broadened, enabling staff to give time to causes of personal interest as well as those organised centrally.

The Press signed up to the Business in the Community (BitC) Work Inspiration programme, offering work experience to 26 fifteen-year-olds from seven local schools, who worked in 17 departments. In the first year of

providing the programme, the Press was awarded a Big Tick in BitC’s National Awards for Excellence.

Support for charities nominated by staff continued, with the Press contribution of £22,500 supplementing the year’s fundraising events. A new charity was nominated: Romsey Mill works locally to overcome disadvantage and promote social inclusion for young people, children and families. For the fifth year running, Press staff, friends and family had a big presence at the annual Bridge the Gap charity walk through Cambridge city centre, with 170 people taking part.

In Africa staff were partnered with the Mellon Housing Initiative to help build 160 houses in slum areas. The initiative represents a unique public–private partnership and has contributed towards meeting the housing shortage in South Africa, completing over 3,000 houses to date. Teams of staff competed to raise money and also dug and laid foundations of houses and a new crèche site.

In Brazil the Bookstep programme has provided educational opportunities to underresourced students since 2002. More than 26,000 Press books have been donated in support of 122 programmes. Food for Thought has helped to combat hunger since 2003: attendees at free Press events are invited to bring non-perishable food, resulting in over 7 tonnes being donated to a local charity. All Press staff take part in Printing Smiles, a partnership with the Christmas Bag programme at Grupo AMAR in São Paolo. Staff donate an < Return to Contents

Conservation area, staff digging pond

Bridge the Gap 2010

Mellon housing initiative

25

Cambridge University Press Annual Report and Accounts 2011

average of 300 bags per year, and have donated nearly 2,500 gift bags for children since 2003.

In Spain staff volunteer as part of the Plan España project to provide a free translation service to help children in developing countries communicate with their sponsor families. The Iberian Branch also signed a collaboration agreement with ONCE, the national association for the visually impaired, to provide over 10,000 Press titles for free adaptation into accessible forms.

Exploring the Conservation Area with work experience students

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Cambridge University Press Annual Report and Accounts 2011

Appendices I. Statistical data May 2010 to April 2011 NB The following tables do not include digitally reprinted books

Table 1: New hardback-only publications from the Academic Group (all publishing centres)

28

Anthropology

2

Archaeology

12

Art

4

Astronomy

28

Cambridge University publications

1

Classical studies

49

Computer science

19

Earth and environmental science

30

Economics, business studies

27

Engineering

97

History

104

Language and linguistics

26

Law

130

Life sciences

29

Literature and Drama

80

Management

21

Mathematics

52

Medicine

51

Music

19

Philosophy

54

Physics

45

Politics, social theory, history of ideas

66

Psychology

22

Religion

21

Sociology

9

Total

998

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Appendices

Table 2: New paperback publications from the Academic Group (all publishing centres) Anthropology

6

Archaeology

14

Art

14

Astronomy

10

Cambridge University publications

1

Classical studies

48

Computer science

16

Earth and environmental science

9

Economics, business studies

33

Education

1

Engineering

21

Film, media and sport

5

General

1

General science

1

History

97

Language and linguistics

31

Law

51

Life sciences

35

Literature and Drama

55

Management

16

Mathematics

49

Medicine

51

Music

8

Philosophy

45

Physics

20

Politics, social theory, history of ideas

107

Psychology

34

Religion

23

Sociology

17

Total

819

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Cambridge University Press Annual Report and Accounts 2011 Table 3: Sales revenue ranked by country (top15) Academic & Professional

Education

ELT

USA

South Africa

Spain

UK

Australia

Brazil

India

UK

USA

Japan

India

Mexico

Germany

USA

UK

Australia

Namibia

South Korea

Canada

Cameroon

Japan

P R China

New Zealand

P R China

The Netherlands

P R China

Italy

South Korea

United Arab Emirates

India

Sweden

Nigeria

Russian Federation

Taiwan

Malaysia

Saudi Arabia

Switzerland

Indonesia

Colombia

Italy

Mauritius

Turkey

France

Senegal

Switzerland

Table 4: Percentage of publishing sales by market split by category (%)

30

Region

Academic & Professional

Education

ELT

Journals

Bibles

Total

Africa

4

86

8

2

0

100

Asia

21

6

58

15

0

100

Australia

23

54

10

13

0

100

Brazil

0

0

100

0

0

100

Europe

40

6

33

20

1

100

Iberia

3

1

88

8

0

100

India

37

23

29

11

0

100

Japan

32

0

42

26

0

100

LAN-Mexico

0

0

97

3

0

100

LAN-Panama

0

2

96

2

0

100

Middle East and North Africa

16

15

64

5

0

100

North America

57

3

12

27

1

100

Total

32

11

39

17

1

100

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Appendices

Table 5: Percentage of publishing sales by category split by market (%) Region

Academic & Professional

Education

ELT

Journals

Bibles

Total

Africa

1

36

1

0

1

5

Asia

6

5

14

8

8

9

Australia

4

26

1

4

1

5

Brazil

0

0

12

0

0

5

Europe

34

15

24

35

44

28

Iberia

1

0

14

3

0

6

India

5

9

3

3

0

4

Japan

4

0

4

6

0

4

LAN-Mexico

0

0

7

0

0

3

LAN-Panama

0

0

8

0

0

3

Middle East & North Africa

1

3

4

1

0

2

North America

44

6

8

40

46

26

Total

100

100

100

100

100

100

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31

Cambridge University Press Annual Report and Accounts 2011

II. Awards and Prizes Among the awards and prizes for Press publications received in 2010 were: Robert C. Allen, The British Industrial Revolution in Global Perspective, winner of Economist Book of the Year 2009 (one of several chosen).

Eugenio F. Biagini, British Democracy and Irish Nationalism 1876–1906, winner of British Scholar Book of the Month, February 2009.

Scott G. Bruce, Silence and Sign Language in Medieval Monasticism: The Cluniac Tradition, c.900–1200, winner of the University of Colorado Kayden Book Award in History 2009.

Joyce Burnette, Gender, Work and Wages in Industrial Revolution Britain, co-winner of the Economic History Society First Monograph Prize 2010.

John Darwin, The Empire Project: The Rise and Fall of the British World-System, 1830– 1970 winner of the 2010 Trevor Reese Memorial Prize, from the Institute of Commonwealth Studies and an Independent ‘History Book of the Year’ 2009.

Nicholas Draper, The Price of Emancipation: Slave-Ownership, Compensation and British Society at the End of Slavery, winner of the 2009 Royal Historical Society Whitfield Prize.

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Joshua S. Goldstein, War and Gender: How Gender Shapes the War System and Vice Versa, co-winner of the 2010 International Studies Association’s Book of the Decade Award.

John Hagan and Wenona RymondRichmond: Darfur and the Crime of Genocide, winner of 2009 Albert J. Reiss Distinguished Scholarship Award (Crime and Deviance Section of the American Sociological Association) and winner of the 2009 Michael J. Hindelang Outstanding Book Award (American Society of Criminology).

J. P. Harris, Douglas Haig and the First World War, winner of the Society for Military History’s 2010 Distinguished Book Award for Biography.

Lise Morjé Howard, UN Peacekeeping in Civil Wars, winner of the 2010 Friends of ACUNS Award.

Michael D. King, Claire L. Parkinson, Kim C. Partington and Robin G. Williams, Our Changing Planet: The View from Space, winner of the 2009–2010 Distinguished Technical Communication award from the Society for Technical Communication.

Marilyn Lake and Henry Reynolds, Drawing the Global Colour Line: White Men’s Countries and the International Challenge of Racial Equality, joint winner of the [Australian] Prime Minister’s Literary Award for Non-Fiction 2009; winner of the Ernest Scott Prize for History 2009 and of the Queensland Premier’s Prize for History 2009.

Appendices

Pier M. Larson, Ocean of Letters: Language and Creolization in an Indian Ocean Diaspora, winner of the 2010 Wesley–Logan Prize from the American Historical Association.

Richard Ned Lebow, A Cultural Theory of International Relations, winner of the 2009 BISA prize for the best book of the year and winner of the 2009 Robert Jervis and Paul Schroeder Best Book Award in International History and Politics from the American Political Science Association.

Ghislaine Lydon, On Trans-Saharan Trails: Islamic Law, Trade Networks, and CrossCultural Exchange in Nineteenth-Century Western Africa, winner of the 2010 Martin A. Klein Prize in African History from the American Historical Association.

Randy L. Maddox and Jason E. Vickers, The Cambridge Companion to John Wesley, winner of the 2010 Smith-Wynkoop Book Award presented by the Wesleyan Theological Society.

Suzanne L. Marchand, German Orientalism in the Age of Empire: Religion, Race, and Scholarship, winner of the 2010 George L. Mosse Prize from the American Historical Association.

Patrick J. McDonald, The Invisible Hand of Peace: Capitalism, The War Machine and International Relations Theory, winner of the 2010 Robert Jervis and Paul Schroeder Best Book Award in International History and Politics from the American Political Science Association and winner of the 2010 Lepgold Prize.

James McGuire and James Quinn, Dictionary of Irish Biography Online, received The Information Services Group Award for an Outstanding Work of Reference 2010, Electronic resource and E-books category.

J. R. McNeill, Mosquito Empires: Ecology and War in the Greater Caribbean, 1620–1914, winner of the 2010 Albert J. Beveridge Award from the American Historical Association.

Michaela Hoenicke Moore, Know Your Enemy: The American Debate on Nazism, 1933–1945, winner of the 2010 SHAFR’s Myrna Bernath Book Award.

Andrew J. F. Morris, The Limits of Voluntarism: Charity and Welfare from the New Deal through the Great Society, winner of the Virginia A. Hodgkinson Research Book Prize 2010.

Anne L. Murphy, The Origins of English Financial Markets: Investment and Speculation before the South Sea Bubble, co-winner of the Economic History Society First Monograph Prize 2010.

Guy Ortolano, The Two Cultures Controversy: Science, Literature and Cultural Politics in Postwar Britain, runner-up for the Royal Historical Society Whitfield Prize 2009.

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33

Cambridge University Press Annual Report and Accounts 2011

Alice Rio, Legal Practice and the Written Word in the Early Middle Ages: Frankish Formulae, c.500–1000, winner of the 2009 Royal Historical Society Gladstone Prize.

Andrew Thrush and John P. Ferris, The House of Commons 1604–1629, awarded the 2010 Information Services Group prize for an Outstanding Work of Reference in print.

Louis Schwartz, Milton and Maternal Mortality, winner of the 2010 James Holly Hanford Book Award from the Milton Society of America.

Brian Walsh, Shakespeare, the Queen’s Men, and the Elizabethan Performance of History, winner of Yale University’s Samuel and Ronnie Heyman Prize 2010.

Patrick Seale, The Struggle for Arab Independence: Riad el-Solh and the Makers of the Modern Middle East, winner of the 2010 BRISMES Award (British Institute for Middle East Studies).

Kenneth Womack, The Cambridge Companion to the Beatles, the Independent’s ‘Music Book of the Year’ 2009.

Colleen Shantz, Paul in Ecstasy: The Neurobiology of the Apostle’s Life and Thought, winner of the 2010 Frank W. Beare Award.

Beth A. Simmons: Mobilizing for Human Rights: International Law in Domestic Politics, winner of the Stein Rokkan Prize for Comparative Social Research 2010.

Amy Singer, Charity in Islamic Societies, winner of the ARNOVA Best Book Award 2010.

Tiffany Stern, Documents of Performance in Early Modern England, winner of the 2010 David Bevington Award for Best New Book in Early Drama Studies.

The following books have been declared Choice Outstanding Academic Titles, 2010: M. Rodwan Abouharb and David Cingranelli, Human Rights and Structural Adjustment.

Ervand Abrahamian, A History of Modern Iran.

Robert B. Baker and Laurence B. McCullough, The Cambridge World History of Medical Ethics.

Claudia Baracchi, Aristotle’s Ethics as First Philosophy.

David J. Bederman, The Classical Foundations of the American Constitution: Prevailing Wisdom.

William Beik, A Social and Cultural History of Early Modern France.

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Appendices

Thomas Benjamin, The Atlantic World: Europeans, Africans, Indians and Their Shared History, 1400–1900.

Ivan T. Berend, From the Soviet Bloc to the European Union: The Economic and Social Transformation of Central and Eastern Europe since 1973.

Gideon Bohak, Ancient Jewish Magic: A History.

Philippe Flajolet and Robert Sedgewick, Analytic Combinatorics.

Louis M. Guenin, The Morality of Embryo Use. Ein-Ya Gura and Michael Maschler, Insights into Game Theory: An Alternative Mathematical Experience.

Andrew Gurr, Shakespeare’s Opposites: The Admiral’s Company 1594–1625.

Ole Bruun, An Introduction to Feng Shui.

Michael W. Charney, A History of Modern Burma.

Robert O. Collins, A History of Modern Sudan.

Rodney Cotterill, The Material World (for the second edition).

Mick P. Couper, Designing Effective Web Surveys.

Nicholas J. Cull, The Cold War and the United States Information Agency: American Propaganda and Public Diplomacy, 1945–1989.

Kurt Danziger, Marking the Mind: A History of Memory.

Martha Dow Fehsenfeld, Lois More Overbeck, Dan Gunn and George Craig, The Letters of Samuel Beckett (for Volume 1: 1929–1940).

Emma Haddad, The Refugee in International Society: Between Sovereigns.

Andreas Kalyvas and Ira Katznelson: Liberal Beginnings: Making a Republic for the Moderns.

Howard Louthan, Converting Bohemia: Force and Persuasion in the Catholic Reformation.

David J. Mabberley, Mabberley’s Plant-book: A Portable Dictionary of Plants, their Classifications, and Uses (for the third edition).

Robert E. McGlone, John Brown’s War against Slavery.

Arthur P. J. Mol, Environmental Reform in the Information Age: The Contours of Informational Governance.

Anthony Philpotts and Jay Ague, Principles of Igneous and Metamorphic Petrology (for the second edition). < Return to Contents

35

Cambridge University Press Annual Report and Accounts 2011

Robert B. Pippin, Hegel’s Practical Philosophy: Rational Agency as Ethical Life.

David Beck Ryden, West Indian Slavery and British Abolition, 1783–1807.

Aili Mari Tripp, Isabel Casimiro, Joy Kwesiga and Alice Mungwa, African Women’s Movements: Transforming Political Landscapes.

Denis Twitchett and Paul Jakov Smith, The Cambridge History of China (for Volume 5, Part 1: The Sung Dynasty and its Precursors, 907–1279).

Willem van Schendel, A History of Bangladesh: Politics, Economic and Civil Society.

Andrew Wallace-Hadrill, Rome’s Cultural Revolution.

Eric Weitz, The Cambridge Introduction to Comedy.

James Anderson Winn, The Poetry of War. The following Press books received awards from the British Medical Association in 2010: Lindsey D.Allan, Andrew C. Cook and Ian C. Huggon, Fetal Echocardiography, A Practical Guide, first prize in the category of Radiology.

Douglas C. Miller, Modern Surgical Neuropathology, first prize in the category of Neurology.

36

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Stephen Stahl, The Prescriber’s Guide, third edition, first prize in the category of Pharmacology.

Highly Commended BMA titles: Julian M. Barker, Simon J. Mills, Simon L. Maguire, Abdul Ghaaliq Lalkhen, Brendan A. McGrath and Hamish Thomson, The Clinical Anaesthesia Viva Book, second edition.

R. Nick Bryan, Introduction to the Science of Medical Imaging.

Molly Courtenay and Matt Griffiths, Medication Safety: An Essential Guide.

S. Nassir Ghaemi, A Clinician’s Guide to Statistics and Epidemiology in Mental Health, Measuring Truth and Uncertainty.

Sarah T. Pendlebury, Matthew F. Giles and Peter M. Rothwell, Transient Ischemic Attack and Stroke, Diagnosis, Investigation and Management.

Mike Slade, Personal Recovery and Mental Illness: A Guide for Mental Health Professionals.

David K. Stevenson, William E. Benitz, Philip Sunshine, Susan R. Hintz and Maurice L. Druzin, eds., Fetal and Neonatal Brain Injury, fourth edition.

Appendices

III. Statute J The University Press 1. There shall be in the University a University Press which shall be devoted to printing and publishing in the furtherance of the acquisition, advancement, conservation, and dissemination of knowledge in all subjects; to the advancement of education, religion, learning, and research; and to the advancement of literature and good letters.

2. There shall be in the University a Press Syndicate. The management of the finance, property, and affairs generally of the University Press shall be the responsibility of the Press Syndicate which shall exercise in relation thereto all the powers of the University except in so far as the Statutes and Ordinances expressly or by necessary implication provide otherwise. The Press Syndicate shall consist of the ViceChancellor or a duly appointed deputy as Chairman and such number of members of the Senate appointed in such manner as shall be determined from time to time by Ordinance.

3. The Press Syndicate shall have power in the name of the University and for the purposes of the University Press to purchase, lease, retain, sell, or transfer property real or personal and to purchase, retain, sell, or transfer securities (which term shall include stocks, funds, and shares) of any description whether or not authorised by law for the investment of trust funds, and this power shall extend to the investment (including

the variation of the investment) of all endowments or other funds of the University Press.

4. All income accruing to the University Press shall be credited to the accounts of the Press Syndicate and all University Press capital and income shall be controlled by the Press Syndicate and applied by them at their sole discretion for the purposes of the University Press.

5. The Press Syndicate shall have power to borrow money for the purposes of the University Press and to make the property or income of the University Press security for any loan, provided that (a) the Council shall have authority to impose limitations on the power of the Press Syndicate to borrow money under this section, and (b) the terms of any loan so secured on the property or income of the University Press shall be in accordance with the Universities and College Estates Acts 1925 and 1964, and shall be approved by the ViceChancellor on behalf of the Council.

6. The Press Syndicate shall have power in the name of the University to engage persons for employment in the service of the University Press, determine their salaries and pensions, and prescribe the conditions of their service.

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37

Cambridge University Press Annual Report and Accounts 2011

7. Persons holding certain posts in the University Press which have been specially designated under this section by the Council on the recommendation of the Press Syndicate shall be treated as University officers for the purposes of Statute A, III, 7(b), Statute B, I, 1, Statute B, III, 6, and Statute K, 3(h). The following have been specially designated under this section: the Secretary of the Press Syndicate, Directors, Associate Directors, Senior Editors, and Senior Managers of the Press.

11.The term property of the University Press here and elsewhere in Statutes and Ordinances shall refer to property of the University held or used for the purposes of the University Press. In favour of any person having dealings with the University Press a certificate signed by the Registrary that any particular property is the property of the University Press, or that any limitations on borrowing have been complied with, shall be conclusive.

12. The Press Syndicate shall make an Annual

8. The accounts of the University Press shall be audited annually by one or more qualified accountants appointed by the Council. The Council shall in every year appoint one or more persons from among the members of the Finance Committee, who shall examine these accounts, confer with the auditor or auditors, and report to the Council.

9. There shall be a Press Seal, as a seal of the University to be used on the directions of the Press Syndicate in matters relating to the affairs of the University Press; but the existence of the Press Seal shall not invalidate the use in connection with such matters of any other seal of the University.

The University shall have power to make Ordinances concerning the custody and affixing of the Press Seal.

10.The Press Syndicate shall have power to delegate any of their powers under this Statute subject to any limitations imposed

by Ordinance.

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Report to the Council, which shall be published to the University either as a whole or in summary.

13. Notwithstanding the provisions of the

foregoing sections, the Council shall have power in circumstances which the Council deems to be exceptional, on the advice of its Finance Committee, to discharge the Press Syndicate, and to assume full responsibility itself for the management of the Press for the time being. If the Council has occasion to exercise the powers available under this section, the Council shall make a full report to the University on the circumstances necessitating such action.

Annual Accounts for the year ending 30 April 2011

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Cambridge University Press Annual Report and Accounts 2011

Annual Accounts for the year ending 30 April 2011

The Members of the Press Syndicate are pleased to present their report together with the financial statements of the Press for the year ending 30 April 2011.

The Press Syndicate Members of the Press Syndicate during the twelve months ending 30 April 2011 were as follows:

The Press Syndicate Professor A. C. Minson (Chairman) Dr R. G. Barker Sir D. C. M. Bell (joined 1 September 2010) Professor W. A. Brown, The Master of Darwin (left 31 December 2010)

Dr J. K. Chothia Professor C. J. Clarke (joined 1 January 2011) Professor T. M. Cox Dr T. N. Harper Professor D. J. Ibbetson Professor T. W. Körner Dr J. Lasenby Professor D. J. McKitterick Dr C. McLaughlin Professor J. S. Morrill Mr A. Reid, University Director of Finance Dr N. P. V. Richardson Dr D. W. Runciman Mr S. J. Webster, OBE Dr G. Johnson (left 31 December 2010)

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Publishing Committee Dr G. Johnson (Chairman - left 31 December 2010) Professor D. J. McKitterick (Chairman from January 2011)

Professor W. A. Brown (left 31 December 2010) Dr J. K. Chothia Professor C. J. Clarke (joined 1 January 2011) Professor T. M. Cox Dr T. N. Harper Professor D. J. Ibbetson Professor T. W. Körner Dr J. Lasenby Dr C. McLaughlin Professor A. C. Minson Professor J. S. Morrill Dr N. P. V. Richardson Dr D. W. Runciman Professor R. Carter (Co-optee – joined 28 May 2010)

Mr S. R. R . Bourne (CEO ex-officio) Dr A. M. C. Brown Mr R. K. Fisher Mr P. A. J. Phillips (COO ex-officio - joined 4 October 2010)

Mrs J. M. Pieterse Mr K. J. Taylor

Annual Accounts 2011

Finance Committee Professor A. C. Minson (Chairman) Sir D. C. M. Bell (joined 1 September 2010) Professor W. A. Brown (left 31 December 2010) Professor D. J. McKitterick Mr A. Reid Mr S. J. Webster Mrs S. Coutu (Co-optee) Dr J. Whitehead (Co-optee) Mr S. R. R. Bourne Mr S. H. Miller Mr P. A. J. Phillips (COO ex-officio - joined 4 October 2010)

Professor J. S. Morrill (left 1 May 2010) Dr G. Johnson (left 31 December 2010)

Audit Committee Dr R. G. Barker (Chairman) Dr J. K. Chothia (left 31 December 2010) Mr J. G. Potter (Co-optee) Mr N. Temple (Co-optee – joined 1 January 2011) Mrs J. Womack (Co-optee – joined 1 January 2011)

The Secretary of the Press Syndicate is Mr Stephen R. R. Bourne, University Printer and Chief Executive of Cambridge University Press.

Cambridge University Press is governed by the Press Syndicate and its related Publishing, Finance and Audit Committees. Nine (2010: five) external (non-University employee) members served on the Committees in the period and received aggregate remuneration of £30,000 (2010: £20,500) with some small reimbursed expenses. Other than this, no individual member of the Press Syndicate received any remuneration from Cambridge University Press, other than in their capacity as authors, series editors, editorial advisors or consultants. The remuneration that these individuals would receive in this capacity is under normal contract terms.

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Cambridge University Press Annual Report and Accounts 2011

Professional advisors and principal office Bankers Barclays Bank 57–58 St Andrews Street Cambridge CB2 3BZ Solicitors Mills & Reeve Solicitors Francis House 112 Hills Road Cambridge CB2 1PH External Auditor PricewaterhouseCoopers LLP Abacus House Castle Park Cambridge CB3 0AN Internal Audit Service Provider Deloitte LLP Stonecutter Court 1 Stonecutter Street London EC4A 4TR

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Investment Managers BlackRock Murray House One Royal Mint Court London EC3N 4HH Legal & General Investment Management Limited One Coleman Street London EC2R 5AA Principal Office The Edinburgh Building Shaftesbury Road Cambridge CB2 8RU

Annual Accounts 2011

Organisation and governance Cambridge University Press is the printing and publishing house of the University of Cambridge, whose right to print and sell ‘all manner of books’ was granted by Henry VIII in 1534. It is the oldest Press in the world, having printed and published continuously since 1584.

Cambridge University Press is established by Statute of the University. Its mission is to operate sustainably for the public benefit a publishing programme that upholds the integrity of the Cambridge name.

Statute J (full text in Appendix III above) of the University of Cambridge states: There shall be in the University a University Press which shall be devoted to printing and publishing in the furtherance of the acquisition, advancement, conservation, and dissemination of knowledge in all subjects; to the advancement of education, religion, learning, and research; and to the advancement of literature and good letters.

The Press is a unitary organisation, with its centre in Cambridge and with an integrated international network of Branches, many of which have non-profit status in their countries of operation.

The University Press is governed by the Press Syndicate, a body consisting of the ViceChancellor’s deputy as Chairman, a University officer appointed by the Council and sixteen senior members of the University Senate. The powers of the Syndicate are fully set out in Statute J and the supporting Ordinances of the Press.

Appointment of members of the Syndicate As set out in Statute J, the Press Syndicate shall consist of the Vice-Chancellor or a duly appointed deputy as Chairman and such number of members of the Senate appointed in such manner as shall be determined from time to time by Ordinance.

Induction and training of the members of the Syndicate Each new member of the Syndicate is briefed on his/her duties and on the business of the Press by the Chief Executive. Periodically, the Syndicate as a whole receives further briefings on legislative changes and on developments in the Press’s business, insofar as they affect their responsibilities as Syndics.

Management and structure The Press Syndicate as a whole exercises ultimate authority over the Press’s publishing, approving every Academic title and the publishing programmes of the Cambridge Learning business stream. The day-to-day management of the Press is delegated to the Chief Executive, who appoints the Press Board (currently consisting of ten Directors), and such other senior managers as he deems necessary to conduct the Press’s business around the world. The Press Syndicate exercises its overall responsibility for these activities through its Publishing Committee, Finance Committee, Remuneration Committee and Audit Committee.

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Cambridge University Press Annual Report and Accounts 2011

Related parties The Press is a department of the University of Cambridge. It provides services to the University, Cambridge Assessment, the subsidiary undertakings where there is less than 100% interest and joint ventures.

Risk management The Press Syndicate and its Finance Committee adopt a number of complementary approaches to managing risk. First, annually, the Press Syndicate conducts a detailed risk analysis, resulting in the preparation of a Risk Register, which evaluates the possible effects on the Press of a series of potentially damaging business factors, any or all of which are familiar problems in the world of international business. Second, executive management sets detailed budgets for all areas of income, expenditure and cash flow, monitors performance monthly, and takes prompt action in response to departures from budget. The financial results are reported to, and reviewed by, the Finance Committee. Third, the Audit Committee operates a rolling internal audit programme, which is undertaken by Deloitte LLP. This programme raises awareness of risk and improves internal control in the Press, measured against private sector and industry best practices. Fourth, the Press has developed arrangements for business continuity planning, with the intention of quickly restoring operations in the aftermath of a major disaster.

Finally, the Press Syndicate has for many years followed a Reserves Policy. It maintains bank balances both to provide funding for Press growth and expansion, and to counteract potential business risk.

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Through a combination of these and other measures, the Press Syndicate is confident that the major risks to which it is exposed have been revised and that the systems are in place to mitigate those risks.

The Press receives no external funding and funds all of its operations through its ongoing business operations. The Press annually transfers to the University 30% of its net incoming resources before transfers as adjusted for certain items.

Objectives, activities and financial performance The objectives of the Press are defined in Statute J (Appendix III above). The key elements of the Press’s strategy, and its recent performance and achievements, are set out in the Chief Executive’s overview.

The Press’s future strategy is centred on three simple propositions: growth, financial performance and quality.

Growth will be realised in part organically; in part through investment in products, software, services and people; and in part by opening up new channels to market, whether through partnerships, acquisitions or technology.

Financial performance will be achieved by selling more while controlling costs, both of which will improve our ratio of sales to fixed overheads; by working our balance sheet harder than ever before, to achieve a return on net assets that justifies continued investment in the business; and by giving our business managers around the world greater responsibility – and accountability – for the financial results of their respective business streams.

Annual Accounts 2011

The quality proposition lies at the heart of what our University expects of the Press, and it is what the Cambridge name has come to mean to customers.

Crucially, it is where the Board perceives economic advantage to lie in an increasingly competitive market. While producers of commodity products will struggle, the quality proposition will differentiate the Press and permit it to prosper.

With the above strategies in mind, the Press’s immediate plans are to continue to invest in new publishing; to invest considerable sums in the new information systems and publishing platforms essential to the e-vision; and to continue to capture market share from its competitors.

Responsibilities of the Syndics of Cambridge University Press for the year ending 30 April 2011 The Syndics are responsible for preparing the Annual Report and Accounts for each financial year in accordance with Statute J of the University of Cambridge.

Under that Statute the Syndics have elected to prepare the Cambridge University Press accounts in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (revised 2005) (‘the SORP’) and applicable United Kingdom law and Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Charities Statement of Recommended Practice requires the Syndics to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the

Group and Cambridge University Press and of the financial activities of the Group for that period. In preparing these financial statements, the Syndics are required to: •• select suitable accounting policies and then apply them consistently; •• make judgements and accounting estimates that are reasonable and prudent; •• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; •• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Syndics are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of Cambridge University Press and the Group and enable them to ensure that the financial statements comply with the university statute. They are also responsible for safeguarding the assets of Cambridge University Press and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Syndics are responsible for the maintenance and integrity of the Charity and financial information included on Cambridge University Press’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Syndics certify that: •• So far as each Syndic is aware, there is no relevant audit information of which < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

Cambridge University Press’ auditors are unaware; and •• The Syndics have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that Cambridge University Press’s auditors are aware of that information.

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Annual Accounts 2011

Independent auditors’ report to the Syndics of Cambridge University Press for the year ended 30 April 2011 We have audited the Group and Press financial statements (the ‘‘financial statements’’) of Cambridge University Press for the year ended 30 April 2011 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Press Balance Sheets and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice: Accounting and Reporting by Charities (revised 2005) (’the SORP’).

Respective responsibilities of the Syndics and auditors As explained more fully in the Responsibilities of the Syndics of Cambridge University Press, the Syndics are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinion, has been prepared for and only for the Syndics as a body in accordance with Statute J of the University of Cambridge, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any

other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s and Press’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Syndics; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Annual Report & Accounts to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

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Cambridge University Press Annual Report and Accounts 2011

Opinion on financial statements In our opinion the financial statements: i. give a true and fair view of the state of the Group’s and Press’s affairs as at 30 April 2011 and of the Group’s income and expenditure and recognised gains and losses for the year then ended; ii. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and iii. have been prepared in accordance with the SORP. PricewaterhouseCoopers LLP Registered Auditors Cambridge 4 November 2011

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Annual Accounts 2011

Consolidated Statement of Financial Activities for the year ended 30 April 2011

Notes

2011 £m

As restated 2010 £m

2 a)

237.1

212.9

Incoming resources from generated funds – investment income

3

0.2

0.2

Other incoming resources

4

–

0.2

237.3

213.3

(223.2)

(205.1)

Incoming resources Incoming resources from charitable activities – publishing and printing services

Total incoming resources Resources expended Charitable activities – publishing and printing services Governance costs

5 b)

(0.9)

(0.5)

Pension and post-retirement finance costs

16,17

(4.0)

(4.9)

Impairments

8, 10

(2.1)

–

5

(230.2)

(210.5)

Total resources expended Net incoming resources before transfers, tax and minority interest

2 b)

7.1

2.8

Taxation

19

(1.0)

(0.7)

Attributable to minority interest

18

(0.3)

(0.4)

Net incoming resources before other recognised gains and losses

2 c)

5.8

1.7

16, 17

8.3

(30.3)

(2.1)

1.4

2 d)

12.0

(27.2)

33.0

59.9

Prior year adjustment – change in stock accounting policy

1

(4.4)

(2.3)

Total funds brought forward

20

28.6

57.6

Other recognised gains/losses Actuarial gain/(loss) on post-retirement benefits Currency translation (loss)/gain Net movement in funds Reconciliation of funds (excluding minority interest) Total funds brought forward as previously stated

Transfer to the University of Cambridge

13

(2.2)

(1.8)

Total funds carried forward

20

38.4

28.6

All activities relate to ongoing operations.

The notes on pages 52–86 form part of these accounts.

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Cambridge University Press Annual Report and Accounts 2011

Consolidated Balance Sheet at 30 April 2011

Notes

2011 £m

As restated 2010 £m

Intangible fixed assets

6

2.2

3.6

Tangible fixed assets

7

50.7

50.4

Investment in joint ventures:

8

Fixed assets

Share of gross assets

2.0

4.1

Share of gross liabilities

(2.8)

(1.5)

52.1

56.6

9

20.6

13.6

Stock and work in progress

9

35.3

40.1

Debtors

10

70.4

57.3

Current assets Intangible current assets – pre publication costs

Cash at bank and in hand including short-term deposits

24.7

24.6

151.0

135.6

Creditors Amounts falling due within one year

69.2

60.4

Net current assets

81.8

75.2

Total assets less current liabilities

133.9

131.8

Amounts falling due after more than one year

11

12

Net assets excluding post-retirement benefit liabilities

4.4

5.6

129.5

126.2 81.1

Defined benefit pension scheme liability – funded

16

73.7

Other post-retirement benefits liability – unfunded

17

15.9

15.1

39.9

30.0

Net assets including post-retirement benefit liabilities Funds General

20

128.0

124.8

Pension & other post-retirement benefits reserve

20

(89.6)

(96.2)

Minority interest

18

The notes on pages 52–86 form part of these accounts.

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1.5

1.4

39.9

30.0

Annual Accounts 2011

Press Balance Sheet at 30 April 2011

Notes

2011 £m

As restated 2010 £m

6

1.7

1.5

Fixed assets Intangible fixed assets Tangible fixed assets

7

47.6

46.8

Investments

8

19.8

21.9

69.1

70.2

Current assets Intangible current assets – pre publication costs

9

20.0

12.5

Stock and work in progress

9

28.4

30.0

Debtors

10

96.9

79.7

Cash at bank and in hand including short-term deposits

20.6

21.5

165.9

143.7

99.1

77.8

Creditors Amounts falling due within one year

11

Net current assets

66.8

65.9

Total assets less current liabilities

135.9

136.1

4.3

5.4

131.6

130.7

Amounts falling due after more than one year

12

Net assets excluding post-retirement benefit liabilities Defined benefit pension scheme liability – funded

16

73.7

81.1

Other post-retirement benefits liability – unfunded

17

15.9

15.1

42.0

34.5

Net assets including post-retirement benefit liabilities Funds General

131.6

130.7

Pension & other post-retirement benefits reserve

(89.6)

(96.2)

42.0

34.5

20

The notes on pages 52–86 form part of these accounts.

The Annual Accounts on pages 49–86 were approved and authorised for issue by the Press Syndicate on 21 October 2011 and signed on its behalf by: Professor A.C. MINSON, Chairman of the Press Syndicate,and Mr STEPHEN R. R. BOURNE, Secretary of the Press Syndicate on 4 November 2011. < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

Notes to the Financial Statements for the year ended 30 April 2011

1. Accounting Policies Basis of accounting The Annual Report and Accounts for the year ended 30 April 2011 have been prepared in compliance with the Statement of Recommended Practice: Accounting and Reporting by Charities (revised 2005) (‘the SORP’) and applicable United Kingdom law and Accounting Standards. The financial statements are prepared on a going concern basis and under the historic cost convention. The principal accounting policies are set out below.

Changes in accounting policy During the year the Group has changed its method of accounting for stock. Previously each stock unit was valued as lifetime costs (including pre publication costs) over lifetime units printed. Under the new policy pre publication costs are capitalised separately (shown as ‘intangible current assets – pre publication costs’ on the face of the balance sheet’) and amortised over the expected useful life of the product. The value of stock units is calculated based on the cost of printing and other direct overheads. As a result of the change in policy regarding pre publication costs, the unit cost of stock items have also changed due to the group stock costing policy. There has been no change in the provisioning policy from the prior year. The full policy is set out below. This new policy better reflects the operations of the Group, is in line with industry practice and better reflects the modern digitisation nature of the publishing sector.

The capitalisation and amortisation of pre publication costs has resulted in a reclassification of costs on the balance sheet. Unamortised pre publication costs totalled £20.6m at 30 April 2011 (2010: £13.6m).

The net impact of the change in accounting policy on the income statement was to reduce funds generated in 2010 by £2.1m and the 2010 opening funds by £2.3m. This includes adjustments relating to a refinement of the revenue recognition for dispatch of goods in the Indian business following a review as part of the change in the policy for accounting for stock, which has had the effect of reducing debtors in this territory.

See note 20 for funds reconciliation.

The change in policy was implemented from the start of 2011. It is not practicable to disclose the impact of the policy change on the 2011 results.

Cash flow statement In accordance with the exemption provided by FRS 1 ‘Cash Flow Statements’ the Press does not present a cash flow statement, on the basis that the ultimate parent prepares a consolidated cash 52

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Annual Accounts 2011

flow statement which includes these results.

Transactions with the University of Cambridge In accordance with the exemption conferred by FRS 8 ‘Related Party Disclosures’, the Press has not disclosed related party transactions with the University of Cambridge and subsidiary undertakings where 100% of a subsidiary’s voting rights are controlled within the Group headed by the University.

Basis of consolidation The consolidated financial statements include the financial statements of the Press and its subsidiary undertakings and joint ventures made up to 30 April 2011. The exception to this are the following entities with historical year ends: Cambridge University Press India (Private) Ltd which prepares financial statements to 31 March, ELT Trading Ltd in Mexico which prepares its financial statements to 31 December, HOTmaths Pty Ltd which prepares its financial statements to 30 June and Cambridge-Obeikan Company Ltd which prepares its financial statements to 31 December. These entities have been accounted for using management information at 30 April 2011. The acquisition method of accounting has been adopted for subsidiary undertakings. Under this method, the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated Statement of Financial Activities from the date of acquisition or up to the date of disposal. Amount attributable to minority interests represent the share of the profits or losses on ordinary activities attributable to the interest of equity shareholders in subsidiaries which are not wholly owned by the Group.

The gross equity method of accounting has been adopted as a method of accounting for joint ventures. These are entities in which the Group holds an interest on a long-term basis and are jointly controlled by the Group and one or more other venturers under a contractual agreement.

In the Press’s financial statements, investments in subsidiaries and joint ventures are accounted for at the lower of cost or net realisable value.

In accordance with the exemption in paragraph 397 of the SORP, the Press Group has included in its financial statements only a consolidated Statement of Financial Activities. The Press’s own incoming resources for the year were £209.5m (2010: £179.4m) and the Press’s own net incoming resources before transfers, taxation and minority interest for the year were £2.0m profit (2010 restated: £2.8m loss).

Value of publishing and printing services supplied The value of publishing and printing services supplied represents the amount of goods and services, net of value added tax and other sales taxes, excluding trade discounts and anticipated returns, provided to external customers. In the case of books and printing, income is recognised < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

upon delivery of the goods to the customer. The income generated from E-products is recognised when the material is supplied. For subscriptions, income is recognised evenly over the subscription period and for material supplied permanently, income is recognised when material is first made available to the customer. In the case of journals, payments received in advance are initially recorded as deferred income and income is recognised when the journal is published and shipped.

The provision for anticipated returns is based primarily on historical return rates. Rights and permissions income is recognised on a cash receipt basis.

Governance costs Governance costs consist of audit fees and other professional fees together with a proportion of senior executive costs related to strategic development and compliance. The apportionment of costs is based on time spent on these activities.

Taxation The charge for taxation is based on the net income arising from activities within taxable jurisdictions, and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.

Deferred tax is recognised on all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions: •• Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

•• Deferred tax is measured on an un-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Investments Investments in subsidiary undertakings are held at historic cost. Investments in joint ventures are held at historic cost plus the Press’s share of profits or losses less amortisation of goodwill. The impairment reviews are carried out where there is an indication that investments have suffered an impairment loss.

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Annual Accounts 2011

Intangible fixed assets (excluding pre publication costs) Intangible fixed assets consist of goodwill, book lists and intellectual property. Goodwill represents the excess of the consideration given over the fair value of the net assets acquired in an acquisition. Book lists purchased separately from a business are capitalised at cost. Book lists and intellectual property acquired as part of an acquisition are capitalised at their fair value where this can be measured reliably.

Intangible assets are amortised on a straight line basis over their estimated useful lives of 5 years.

The carrying value of intangible assets is reviewed for impairment at the end of the first full year following acquisition and in other periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less accumulated depreciation. Assets costing less than £5,000 per individual item are expensed in the period in which they are acquired.

Depreciation is provided on all tangible fixed assets at rates calculated to expense the cost of each asset on a straight line basis over its expected useful life, as follows:

Freehold land Freehold buildings Plant, machinery, vehicles and office equipment Leasehold buildings & improvements

Estimated life for depreciation Nil 50 years 4 to 10 years Over the life of the lease

Assets under construction are carried at historic cost and are depreciated over their useful lives from the date they are first brought into use.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Stock, work in progress and pre publication costs Stocks and work in progress are stated at the lower of cost and net realisable value after making provision for slow moving and obsolete items.

In order to estimate net realisable value, the Press Group fully provides for all stock greater than 1.5 times the previous 12 months sales on all stock aged over 24 months since the publication date.

Pre-publication costs represent direct costs incurred in the development of products prior to their publication. These costs are carried forward in current intangible assets where the title will generate probable future economic benefits and costs can be measured reliably. These costs are < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

amortised upon publication of the title over the estimated useful life of the product as below: Academic product Learning product

– 18 months from publication date – 36 months from publication date

Provision for impairments of accumulated pre-publication costs are made based on recoverability of unamortised pre-publication costs.

Debtors Debtors are recorded net of bad and doubtful debt and credit note provisions.

Foreign currency translation Group Financial statements of foreign operations, for which the functional currency is the local currency, are translated into sterling using the exchange rate at each balance sheet date for assets and liabilities, and at the weighted average exchange rate for the Statement of Financial Activities. The exchange differences arising on re-translation of opening assets are taken directly to reserves. All other translation differences are taken to the Statement of Financial Activities.

Press Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.

Pensions The Press operates a number of defined contribution and defined benefit pension schemes. The assets of all the schemes are held in separate trustee-administered funds. For the defined contribution schemes, the amounts charged in the Statement of Financial Activities represent the contributions payable to the scheme in respect of the accounting period.

For the defined benefit schemes, the scheme assets are measured using market values. Pension scheme liabilities are measured using an attained age method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. The pension scheme deficit is recognised in full within the balance sheet. The movement in the scheme deficit is split between resources expended, pension and post-retirement finance costs, and in other recognised gains/(losses) – actuarial gain on post-retirement benefits.

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Annual Accounts 2011

Other post-retirement benefit obligations The Press provides post-retirement medical and insurance benefits to certain retired employees of the Press in both the United Kingdom and United States of America. Liabilities in respect of these benefits are calculated based on actuarial assumptions at each balance sheet date. The deficit is recognised in full within the balance sheet. The movement in the deficit is split between resources expended, pension and post-retirement finance costs, and in other recognised gains/(losses) – actuarial loss on post-retirement benefits.

Leases Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term. Lease incentives are recognised over the shorter of the lease term and the date of the next rent review.

The Group sublets some of its assets and recognises the rental income on a straight line basis over the period of sublease. The rental income is recognised within total incoming resources in the Statement of Financial Activities.

Cash and financial instruments The Press group is party to financial instrument arrangements as part of its everyday operations.

These include cash, short term deposits, accounts receivable, accounts payable, and foreign currency forward exchange contracts.

The Press group manages part of its foreign currency exposure by entering into forward exchange contracts. The Press group revalues these instruments at the year end rate and charges the resulting gain or loss through the Statement of Financial Activities for the year.

Therefore, all financial instruments including cash are measured at cost on the date the transaction was entered into. The Press group considers the fair value of these items to equal their carrying value. Included in cash at bank and in hand are amounts that are accessible within 24 hours subject to a bank charge.

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Cambridge University Press Annual Report and Accounts 2011

2. Investors share of results in joint ventures 2011 £m

As restated 2010 £m

Incoming resource from charitable activities – publishing and printing services (group and share of joint ventures)

237.3

213.1

Share of joint ventures’ turnover

(0.2)

(0.2)

Incoming resources – group

237.1

212.9

a) Incoming resource from charitable activities

b) Net incoming resources before transfers, tax and minority interest Net incoming resources before transfers, tax and minority interest – (group and share of joint ventures)

8.1

3.4

Share of joint ventures’ net incoming resources before transfers

(1.0)

(0.6)

Net incoming resources before transfers, tax and minority interest

7.1

2.8

c) Net incoming resources before other recognised gains and losses Net incoming resources before other recognised gains and losses attributable to the members of the Press Syndicate

6.8

2.3

Share of joint ventures’ net incoming resources before other recognised gains and losses

(1.0)

(0.6)

Group

5.8

1.7

13.0

(26.6)

d) Total recognised gains and losses relating to the year Total recognised gains and losses relating to the year Share of joint ventures’ total recognised gains and losses

(1.0)

(0.6)

Group

12.0

(27.2)

The trading results of the Group’s joint ventures for the year were deemed immaterial to the overall results of the Press and therefore the information relating to the investors’ share of results in joint ventures has been disclosed in the notes 2 and 3 rather than on the face of the Statement of Financial Activities.

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Annual Accounts 2011

3. Incoming resources from generated funds – investment income

Interest on bank deposits Share of joint ventures’ interest Total incoming resources from generated funds – investment income

2011 £m

2010 £m

0.2

0.2

0.2

0.2

–

–

0.2

0.2

4. Other incoming resources During the year ended 30th April 2010 the Group entered into a Black empowerment deal in South Africa whereby it issued additional shares in Cambridge University Press South Africa (Proprietary) Limited to CIDA which is a Black empowered Educational Trust for a consideration of ZAR 3.2m (£284k). This transaction effectively transferred 25.1% of the business to CIDA and the Group generated a profit of £212k against its historical investment cost. The shares were issued below market value resulting under FRS 20 in a charge of £355k which is to be recovered over 9 years by CIDA waiving its rights to dividends. The Group is expensing the FRS 20 charge over 9 years.

Contractually under Clause 18.5 of the CIDA Divestment Cambridge University Press South Africa (Proprietary) Limited are restricted from paying dividends from retained earnings at the time of divestment. This restriction remains so long as CIDA remain a shareholder.

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59

Cambridge University Press Annual Report and Accounts 2011

5. Costs of activities in furtherance of charity’s objectives 2011 £m

As restated 2010 £m

Pension and post-retirement finance costs

4.0

4.9

Interest payable on bank loans and overdrafts

0.3

0.4

Net incoming resources before transfers, tax and minority interest are stated after charging:

Staff costs

74.6

67.6

Other costs in connection with publishing and printing activities

151.3

137.6

230.2

210.5

2011 £m

2010 £m

Salaries and wages

60.0

57.5

Social security costs

6.7

5.1

5a) Staff costs consist of:

Other pension costs

7.9

5.0

74.6

67.6

1,947

1,934

2011 £m

2010 £m

Fees for external audit services

0.4

0.3

Fees for non-audit services

0.1

–

Legal and other professional services

0.4

0.2

The monthly average number of permanent staff was

5b) Governance costs:

Restructuring costs net of contract termination settlement

60

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–

–

0.9

0.5

Annual Accounts 2011

6. Intangible fixed assets: Group Cost Book lists £m

Goodwill £m

Total £m

1-May-10

5.9

7.8

13.7

Additions

0.4

–

0.4

30-Apr-11

6.3

7.8

14.1

4.6

5.5

10.1

Amortisation 1-May-10 Charge for the period

1.0

0.8

1.8

30-Apr-11

5.6

6.3

11.9

Net book value 30-Apr-11

0.7

1.5

2.2

30-Apr-10

1.3

2.3

3.6

On 16 September 2009 the Group acquired an additional 24% of Cambridge University Press India (Private) Limited taking share of ownership from 51% to 75%. The deal was structured such that 19% of the company was purchased by acquiring shares directly from the minority interest for consideration of £1.3m. The remaining 5% of the acquisition was funded by the purchase of newly issued shares from Cambridge University Press India (Private) Limited for consideration of £1.5m. The goodwill arising from this acquisition will be amortised over its useful life of 5 years, as will the remaining unamortised goodwill arising from the original acquisition. The investment in Cambridge University Press India (Private) Limited has been included in the Group’s balance sheet at its fair value at the date of acquisition.

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Cambridge University Press Annual Report and Accounts 2011

Intangible fixed assets: Press Cost Book lists £m

Goodwill £m

Total £m

1-May-10

7.9

1.1

9.0

Additions

1.6

–

1.6

30-Apr-11

9.5

1.1

10.6

1-May-10

6.4

1.1

7.5

Charge for the period

1.4

–

1.4

30-Apr-11

7.8

1.1

8.9

30-Apr-11

1.7

–

1.7

30-Apr-10

1.5

–

1.5

Amortisation

Net book value

Intangible assets are amortised on a straight line basis over their estimated useful lives of 5 years.

62

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Annual Accounts 2011

7. Tangible fixed assets: Group Freehold land & buildings

£m

Plant, Leasehold machinery, buildings & vehicles improvements & office equipment £m £m

Assets under construction

Total

£m

£m 75.2

Cost 1-May-10

37.7

28.1

6.4

3.0

Additions

0.3

4.1

0.1

2.1

6.6

Disposals

–

(1.4)

–

–

(1.4)

Transfers

–

1.5

–

(1.5)

–

Foreign exchange differences

(0.8)

(0.2)

(0.4)

–

(1.4)

30-Apr-11

37.2

32.1

6.1

3.6

79.0

24.8

Accumulated depreciation 1-May-10

5.8

17.8

1.2

–

Charge for the period

0.7

4.2

0.4

–

5.3

Disposals

–

(1.3)

–

–

(1.3)

–

–

–

–

–

Foreign exchange differences

Transfers

(0.1)

(0.3)

(0.1)

–

(0.5)

30-Apr-11

6.4

20.4

1.5

–

28.3

Net book value 30-Apr-11

30.8

11.7

4.6

3.6

50.7

30-Apr-10

31.9

10.3

5.2

3.0

50.4

Included in the freehold land and buildings is £9.4m of cost and £1.6m of accumulated depreciation relating to the building in West Nyack, New York. The building comprises 469,000 sq ft of warehouse space and 20,000 sq ft of office space. The Group has subleased 125,000 sq ft (26.6%) of warehouse space under a 7 year non-cancellable lease which expires on 30 September 2015. The total annual payments to be received under this agreement are: Expiry date

£m

After 4 years

0.4 0.4

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Cambridge University Press Annual Report and Accounts 2011

Tangible fixed assets: Press Freehold land & buildings

£m

Plant, Leasehold machinery, buildings & vehicles improvements & office equipment £m £m

Assets under construction

Total

£m

£m 63.2

Cost 1-May-10

37.0

16.8

6.4

3.0

Additions

0.3

3.3

–

2.1

5.7

Disposals

–

(0.6)

–

–

(0.6)

Transfers

–

1.5

–

(1.5)

–

Foreign exchange differences

(0.7)

(0.3)

(0.4)

–

(1.4)

30-Apr-11

36.6

20.7

6.0

3.6

66.9

16.4

Accumulated depreciation 1-May-10

5.7

9.6

1.1

–

Charge for the period

0.7

3.0

0.3

–

4.0

Disposals

–

(0.6)

–

–

(0.6)

–

–

–

–

–

Foreign exchange differences

Transfers

(0.1)

(0.3)

(0.1)

–

(0.5)

30-Apr-11

6.3

11.7

1.3

–

19.3

Net book value

64

30-Apr-11

30.3

9.0

4.7

3.6

47.6

30-Apr-10

31.3

7.2

5.3

3.0

46.8

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Annual Accounts 2011

8. Fixed asset investments: Group Joint ventures £m

Total £m

1-May-10

2.6

2.6

Share of joint venture loss for the year

(1.0)

(1.0)

Impairment

(1.6)

(1.6)

Amortisation of goodwill

(1.0)

(1.0)

Foreign exchange gain

0.2

0.2

30-Apr-11

(0.8)

(0.8)

Additional disclosures are given in respect of joint ventures in aggregate, which exceed certain 25% thresholds under FRS 9 ‘Associates and Joint Ventures’, as follows:

Fixed assets

2011 £m

2010 £m

0.6

0.8

Current assets

1.4

0.7

Share of gross assets

2.0

1.5

Liabilities due within one year

(1.8)

(0.4)

Liabilities due after more than one year

(1.0)

(1.1)

Share of gross liabilities

(2.8)

(1.5)

Share of net assets

(0.8)

–

–

2.6

(0.8)

2.6

Goodwill Total fixed asset investments

Joint venture disclosure relates to investments held in Cambridge-Obeikan, Cambridge-English360 Limited and HOTmaths. During 2011, goodwill on HOTmaths investment has been impaired by £1.6m. In addition, an impairment against the Cambridge-English360 Limited receivable amounting to £0.5m has been made in amounts owed by joint ventures in Note 10 below.

As disclosed in Note 21 – post balance sheet events, subsequent to the year end, the investment held in Cambridge-English360 Limited has been sold. Also the Press Group has increased its shareholding in HOTmaths. See note 21 for details of this together with the post year end disposal of the Group’s interests in Global Grid for Learning Limited and CambridgeEnglish360 Limited. < Return to Contents

65

Cambridge University Press Annual Report and Accounts 2011

Fixed asset investments: Press Subsidiary undertakings £m

Joint ventures £m

1-May-10

19.5

2.4

21.9

Transfers

(0.2)

–

(0.2)

Impairments

(1.8)

(0.3)

(2.1)

Foreign exchange differences 30-Apr-11

Total £m

–

0.2

0.2

17.5

2.3

19.8

During the year, the operations of Cambridge Archive Editions Limited were transferred to the Press, and are included at the year end in the results and the balance sheet of the Press.

Following the transfer, the investment in Cambridge Archive Editions Limited has been impaired in full.

Details of the investments in which the Group and the Press hold 20% or more of the nominal value of any class of share capital are as follows: Country of incorporation

Principal activity

Subsidiary undertakings Cambridge University Press (Holdings) Limited

66

Class and percentage of shares held Group

Press 17.5m ordinary £1 shares 100%

England

Holding company

17.5m ordinary £1 shares 100%

Cambridge University Press India (Private) Limited

India

Academic and educational book publisher & distributor

1,142,168 ordinary INR 10 shares 75%

Cambridge–Hitachisoft Educational Solutions PLC

England

Electronic educational publishing

39,000 ordinary £100 shares 60%

Cambridge University Press South Africa (Proprietary) Limited

South Africa

Academic and educational book publisher & distributor

1,000 ordinary ZAR 1 shares 74.9%

Cambridge University Press Japan KK

Japan

Representative office

200 ordinary Yen 50,000 shares 100%

Cambridge Knowledge (China) Limited

Hong Kong

Representative office

1 ordinary HK$1 shares 100%

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Annual Accounts 2011 Country of incorporation

Principal activity

Class and percentage of shares held

Electronic educational publishing

2 ordinary £1 shares 100%

Subsidiary undertakings (continued)

Group

Cambridge Printing Services Limited England

Printing Services

2.8m ordinary £1 shares 100%

United Publishers Services Limited

Hong Kong

Distribution

200,000 HK$10 shares 100%

Cambridge Archive Editions Limited

England

Publishing

100 ordinary £1 shares 100%

ELT Trading Limited

Mexico – Latin America

Publishing

50,000 ordinary Peso 1 shares 100%

Editorial Edicambridge Cia Ltda

Equador

Representative office

10,000 ordinary US$1 shares 100%

Cambridge University Press (Greece) EPE

Greece

Representative office

600 ordinary €30 shares 100%

Cambridge University Press Panama SA

Latin America

Distribution

300 ordinary US$1 shares 100%

England

Electronic educational publishing

878,394 ordinary £1 shares 50%

Saudi Arabia

Academic and educational book publisher & distributor

3,000 ordinary Saudi Riyals 1000 shares 50%

Australia

Web based digital learning management system

1,653 ordinary A$1 1,653 ordinary A$1 shares 33% with option shares 33% with option to increase to 50% to increase to 50%

Global Grid for Learning Limited (formerly Cambridge Global Grid for Learning Limited)

England

Joint Ventures Cambridge-English360 Limited Cambridge–Obeikan Company Limited

HOTmaths Pty Limited

Group

Press

100 ordinary £1 shares 100%

Press

The Press Group has increased its shareholding in HOTmaths from 33.3% to 55%, as amended by the revised Shareholder’s Agreement dated 4 August 2011.

None of the subsidiary undertakings is a registered charity.

Cambridge University Press (Holdings) Limited is a multi-purpose holding company, one of whose purpose is to simplify the process of raising funding from financial institutions.

Cambridge University Press India (Private) Limited is the academic and educational book publisher and distributor for India.

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Cambridge University Press Annual Report and Accounts 2011

Cambridge-Hitachisoft Educational Solutions PLC is an e-learning company that combines the curriculum knowledge and educational expertise of Cambridge University Press and the innovative technology of Hitachi Software Engineering. The company is a joint partnership owned 60% by Cambridge University Press (Holdings) Limited and 40% by Hitachi Software Engineering.

Cambridge University Press South Africa (Proprietary) Limited is the academic and educational book publisher & distributor for South Africa.

Cambridge University Press Japan KK is a Japanese company established to provide the Press with improved access to the Japanese market.

Cambridge Knowledge (China) Limited is a Hong Kong based company established to provide the Press with improved access to the Hong Kong and Chinese market.

Cambridge Global Grid for Learning Limited is an online exchange of diverse and rich digital resources for teachers and learners worldwide.

Cambridge Printing Services Limited provides printing services.

United Publishers Services Limited is a Hong Kong registered company providing distribution services in Japan.

Cambridge Archive Editions Limited is a publishing company.

ELT Trading Limited is a Mexico registered company established for publishing in Mexico and South America.

Editorial Edicambridge Cia Ltda is a Ecuador registered company providing representative services in Ecuador.

Cambridge University Press (Greece) EPE is a Greek registered company providing representative services in Greece, Cyprus and some other Mediterranean locations.

Cambridge University Press (Panama) SA is a Panama registered company providing distribution services for South America.

The Press has not disclosed the trading activities and balance sheets of its material subsidiaries and joint ventures on the basis that all of the material subsidiaries and joint ventures are independently audited and file their accounts in their respective jurisdictions. Copies of these accounts are freely available from Cambridge University Press head office at University Printing House, Shaftesbury Road, Cambridge CB2 8BS.

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Annual Accounts 2011

9. Pre-publication costs, stock and work in progress Group 2011 £m Pre publication costs

Press

As restated 2010 £m

2011 £m

As restated 2010 £m

20.6

13.6

20.0

12.5

20.6

13.6

20.0

12.5

Intangible current assets Group 2011 £m

Press

As restated 2010 £m

2011 £m

As restated 2010 £m

01-May-10

167.1

–

159.2

–

Additions

21.8

–

21.7

–

Foreign exchange differences

(2.9)

–

(3.1)

–

30-Apr-11

186.0

–

177.8

–

Amortisation 01-May-10

153.5

–

146.7

–

Charge for the period

14.6

–

13.9

–

Foreign exchange differences

(2.7)

–

(2.8)

–

30-Apr-11

165.4

–

157.8

–

30-Apr-11

20.6

–

20.0

–

30-Apr-10

13.6

–

12.5

–

Net book value

Stock and work in progress Group 2011 £m

Press

As restated 2010 £m

2011 £m

As restated 2010 £m

Raw materials

0.3

0.1

–

–

Work in progress

8.3

13.5

7.8

12.7

Stocks of publications

26.7

26.5

20.6

17.3

35.3

40.1

28.4

30.0

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69

Cambridge University Press Annual Report and Accounts 2011

10. Debtors Group

Press

2011 £m

As restated 2010 £m

2011 £m

As restated 2010 £m

Trade debtors

51.9

43.4

34.1

33.6

Other debtors

6.5

4.6

5.1

3.0 36.6

–

–

47.3

Amounts owed by joint ventures

Amounts owed by group undertakings

2.9

1.4

1.3

–

Prepayments and accrued interest

9.1

7.9

9.1

6.5

70.4

57.3

96.9

79.7

Amounts owed by group undertakings is stated after an impairment of £0.7m in respect of the amount due from Global Grid for Learning Limited (GGfL). See note 21 for details of post year end sale of GGfL. All amounts owed by group undertakings are payable on demand.

Amounts owed by joint ventures is stated after an impairment of £0.5m in respect of the amount due from Cambridge-English360 Limited. This transaction was taken into account when determining the impairment required. See note 21 for details of post year end sale of CambridgeEnglish360 Limited.

Amounts owed by joint ventures relate to recharges and loans as disclosed in Note 14.

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Annual Accounts 2011

11. Creditors (amounts falling due within one year) Group 2011 £m

Press 2010 £m

2011 £m

2010 £m

Current instalments due on loans

0.6

1.1

0.6

0.6

Bank overdraft

2.9

0.2

2.8

0.1

Creditors for publishing and printing services

14.4

13.7

10.5

8.9

–

–

39.5

27.5 0.7

Amounts owed to group undertakings Other taxes and social security

0.9

–

0.6

Corporation tax

1.4

0.9

–

–

Other creditors

8.2

6.9

6.7

5.0

Accruals and deferred income

40.8

37.6

38.4

35.0

69.2

60.4

99.1

77.8

The bank overdraft of £2.9m outstanding at year end relates to Cambridge University Press Group of £2.8m and Cambridge University Press India (Private) Limited of £0.1m. The India overdraft has been guaranteed by the Group up to the maximum of £0.78m. In addition, the bank has a first charge over the entire assets of Cambridge University Press India (Private) Limited and personal guarantees were given to the bank by Mr Manas Saikia (Managing Director) and Vinod Vasishat (Director and minority share holder).

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Cambridge University Press Annual Report and Accounts 2011

12. Creditors (amounts falling due after more than one year) Group 2011 £m

Press 2010 £m

2011 £m

2010 £m 5.4

Bank loans

4.4

5.3

4.3

Loan from minority interest

–

0.3

–

–

4.4

5.6

4.3

5.4

Group Analysis of debt Within 1 year

Press

2011 £m

2010 £m

2011 £m

2010 £m

0.6

1.1

0.6

0.6

Between 1 and 2 years

0.6

1.0

0.6

0.6

Between 2 and 5 years

2.1

2.3

2.0

2.4

After more than 5 years

1.7

2.3

1.7

2.4

5.0

6.7

4.9

6.0

On 28 April 2008, the Press drew down a US dollar denominated unsecured fixed rate loan of $11.0m repayable over 10 years with Barclays Bank PLC to provide for the long term funding of the Americas branch operations. The rate of interest was fixed at 4.50% for the period of the loan. The amount outstanding at 30 April 2011 is £5.0m (2010: £6.7m).

13. Support for the University of Cambridge Support for the University of Cambridge, including cash transfers and printing services, in the period amounted to £2.2m (2010: £1.8m).

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Annual Accounts 2011

14. Related party transactions: Group and Press Press In accordance with the exemption conferred by FRS 8, the Press has not disclosed related party transactions with wholly owned subsidiaries.

Group In accordance with the exemption conferred by FRS 8, the Press group has not disclosed related party transactions with the University of Cambridge and wholly owned subsidiaries within the Group headed by the University.

During the year, the Press Group entered into transactions, in ordinary course of business, with its 60% subsidiary, Cambridge-Hitachisoft Educational Solutions PLC, its 75% subsidiary, Cambridge University Press India (Private) Limited and its 74.9% subsidiary Cambridge University Press South Africa (Proprietary) Limited. The transactions entered into and trading and loan balances outstanding at 30 April 2011 are as follows: Sales to related party £m

Purchases from related party £m

Amounts owed from related party £m

Amounts owed to related party £m

Recharges and interest £m

Related party Cambridge-Hitachisoft Educational Solutions PLC 2011

–

0.4

0.1

–

0.6

2010

–

0.3

–

–

0.1

Cambridge University Press India (Private) Limited 2011

1.4

0.1

1.5

0.1

0.1

2010

1.0

0.2

0.6

0.1

–

Cambridge University Press South Africa (Proprietary) Limited 2011

0.9

–

5.7

–

(0.3)

2010

0.6

–

5.8

0.5

0.6

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Cambridge University Press Annual Report and Accounts 2011

In addition, the Press Group also entered into transactions with its joint ventures, as follows: Sales to related party £m

Purchases from related party £m

Amounts owed from related party £m

Amounts owed to related party £m

Recharges and interest £m

HOTmaths PTY Limited 2011

–

–

0.9

–

0.1

2010

–

–

0.2

–

0.2

2011

–

0.3

0.7

–

0.3

2010

–

–

0.2

–

–

2011

–

–

1.3

–

1.1

2010

–

–

1.0

–

1.0

Cambridge-English360 Limited

Cambridge–Obeikan Company Limited

The HOTmaths joint venture has been created for the purpose of developing and commercialising web based maths digital learning management systems for students, teachers and other parties with an interest in education.

English360 is a web based e-learning platform for teaching business English, English for specific purposes and for teachers to create and deliver personalised learning programmes to their students. The company is a joint venture owned 50% by Cambridge University Press (Holdings) Limited and 50% by English360 Inc. English360 is located on the main Cambridge site and has use of on site facilities and office space. There is no recharge for the use of Cambridge site infrastructure.

Cambridge-Obeikan is a publishing house which focuses on the adaptation of Cambridge University Press’s English Language Teaching materials for the Arab speaking world, the key focus being on Saudi Arabia. The company publishes material in both print and digital format. The company is a joint venture owned 50% by Cambridge University Press (Holdings) Limited and 50% by Obeikan Research and Development. During the year, the Press developed a number of on-line course materials for the joint venture which it has recharged at the year end.

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Annual Accounts 2011

15. Operating leases: Group and Press The annual commitments for assets held under non-cancellable operating lease contracts are as follows: Land and buildings

Total

Total

2011 £m

2010 £m

2011 £m

Other 2010 £m

2011 £m

2010 £m

0.5

0.7

0.1

0.1

0.6

0.8

Expiry date: Less than 1 year Between 2 and 5 years

1.4

1.0

0.3

0.4

1.7

1.4

After 5 years

2.1

1.5

–

–

2.1

1.5

4.0

3.2

0.4

0.5

4.4

3.7

2011 £m

2010 £m

Land and buildings

3.8

2.8

Other

0.5

0.5

4.3

3.3

Operating lease charges for the year were

16. Pensions Cambridge University Press operates both defined benefit and defined contribution pension schemes. In the UK, the Press operates a defined contribution stakeholder pension scheme and two defined benefit pension schemes, the Contributory Pension Fund (CPF) and the Senior Staff Pension Scheme (SSPS). In the US, the Press operates the Cambridge University Press Defined Benefit Plan (DBP) and a separate defined contribution scheme. The Press also has immaterial schemes elsewhere in the world. The defined benefit schemes provide benefits based on pensionable pay. Pension costs are determined by independent qualified actuaries and are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees’ working lives with the Press. The assets of all the schemes are held in separate trustee-administered funds. All of the Press’s defined benefit plans have been closed to new members and the US Defined Benefit Plan was further curtailed during 2009.

The defined benefit pension schemes operate on a funded basis. The funding policy, agreed by the Trustees and Employers, is to contribute such variable amounts as, on the advice of the schemes’ actuaries, will achieve a 100% funding level on a projected salary basis over a rolling seven year period. Actuarial assessments to evaluate the schemes’ liabilities and contributions required to fund these are carried out by independent qualified actuaries, with the last such triennial valuation being carried out as at 1 January 2010 using the attained age method in the UK. In the US annual valuations are carried out using the unit credit method (whereby the Plan is frozen for future accruals). The last annual review of the schemes’ funding was undertaken as at 1 January 2011 in the UK and 1 December 2010 in North America. < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

The total current service cost of the defined benefit schemes in the year ended 30 April 2011 was £2.8m (2010:£2.2m) and for the defined contribution schemes was £3.8m (2010:£2.6m).

There were no contributions outstanding at year ended 30 April 2011 (2010: £nil).

The latest valuations were carried out by the actuaries for the purpose of the annual accounts on a FRS 17 basis as at 30 April 2011. The assumptions used by the actuaries are the best estimates chosen from a range of possible actuarial assumptions which, owing to the timescale covered, may not necessarily be borne out in practice.

Defined Benefit Pension Plans The information disclosed below is in respect of the whole of the plans for which the Press is the sponsoring employer throughout the periods shown.

2011 £m

76

2010 £m

Fair value of plan assets

183.7

173.1

Present value of funded defined benefit obligations

(257.4)

(254.2)

Net liability

(73.7)

(81.1)

Movements in fair value of plan assets

2011 £m

2010 £m

At 1 May

173.1

147.0

Expected return on plan assets

10.6

8.9

Actuarial gain

7.0

22.9

Contributions by employer

4.1

3.8

Contributions by members

0.3

0.4

Benefits paid

(9.9)

(9.4)

Exchange adjustments

(1.5)

(0.5)

At 30 April

183.7

173.1

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Annual Accounts 2011

Movements in present value of defined benefit obligation At 1 May

2011 £m

2010 £m

(254.2)

(195.4)

Current service cost

(2.8)

(2.2)

Interest cost

(13.8)

(12.9)

Actuarial gain/(loss)

1.6

(53.8)

Benefits paid

9.9

9.4

Exchange adjustments

1.9

0.7

(257.4)

(254.2)

2011 £m

2010 £m

At 30 April Expense recognised in the Statement of Financial Activities Current service cost

(2.8)

(2.2)

Interest on defined benefit pension plan obligation

(13.8)

(12.9)

Expected return on defined benefit pension plan assets

10.6

8.9

Total

(6.0)

(6.2)

The expense is recognised in the following line items in the Statement of Financial Activities:

Pension and post-retirement finance cost Charitable activities – publishing and printing services

2011 £m

2010 £m

(3.2)

(4.0)

(2.8)

(2.2)

(6.0)

(6.2)

The total amount recognised in the Statement of Financial Activities in respect of actuarial gains and losses is £8.6m gain (2010: £30.9m loss).

Cumulative actuarial losses reported for accounting periods ending on or after 22 June 2002 and subsequently included by prior year adjustment under paragraph 96 of FRS 17, are £42.8m (2010: £51.4m).

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Cambridge University Press Annual Report and Accounts 2011

The fair value of the plan assets and the return on those assets were as follows: 2011 £m

2010 £m

Equities

90.7

84.1

Corporate bonds

80.9

76.1

Property

12.1

12.9

Other

–

–

183.7

173.1

17.6

31.8

Actual return on plan assets

The expected rates of return on plan assets are determined by reference to relevant indices. The overall expected rate of return is calculated by weighting the individual rates in accordance with the anticipated balance in the plan’s investment portfolio.

Principal actuarial assumptions (expressed as weighted averages) at the year end were as follows: Defined Benefit Pension Plan CPF & SSPS Scheme

78

2011 %

2010 %

Pension and inflation increase rate

3.5

3.7

Discount rate

5.4

5.5

Expected rate of return on plan assets

6.1

6.2

Expected return on plan assets at beginning of the period

6.2

6.0

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Annual Accounts 2011

The assumptions relating to longevity underlying the UK pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows: Longevity assumptions

2011 Years

2010 Years

Current pensioners at 65 – male

23.2

22.1

Current pensioners at 65 – female

25.8

25.0

Future pensioners at 65 – male

26.3

22.8

Future pensioners at 65 – female

28.7

25.6

In valuing the liabilities of the UK pension fund at 30 April 2011, mortality assumptions have been made as indicated above. If life expectancy had been changed to assume that all members of the fund lived for one year longer, the value of the reported liabilities at 30 April 2011 would have increased by £6.9m.

DBP Scheme

2011 %

2010 %

Pension and inflation increase rate

3.0

3.0

Discount rate

5.2

5.6

Expected rate of return on plan assets

7.5

7.5

Expected return on plan assets at beginning of the period

7.5

7.5

The assumptions relating to longevity underlying the US pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows: Longevity assumptions

2011 Years

2010 Years

Current pensioners at 65 – male

19.1

18.4

Current pensioners at 65 – female

21.0

20.4

Future pensioners at 65 – male

19.1

18.4

Future pensioners at 65 – female

21.0

20.4

In valuing the liabilities of the US pension fund at 30 April 2011, mortality assumptions have been made as indicated above. If life expectancy had been changed to assume that all members of the fund lived for one year longer, the value of the reported liabilities at 30 April 2011 would have increased by £609k. < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011

History of plans The history of the plans for the current and prior periods are as follows: Balance sheet Defined Benefit Pension Plan

2011 £m

2010 £m

2009 £m

2008 £m

2007 £m

Fair value of scheme assets

183.7

173.1

147.0

174.9

178.6

Present value of scheme liabilities

(257.4)

(254.2)

(195.4)

(205.5)

(202.5)

Deficit

(73.7)

(81.1)

(48.4)

(30.6)

(23.9)

Experience adjustments

2011 %

2010 %

2009 %

2008 %

2007 %

3.3

0.1

(27.1)

(6.6)

2.2

(1.0)

(0.7)

(1.9)

(0.4)

(1.1)

Experience adjustments on scheme assets as a percentage of scheme assets Experience adjustments on scheme liabilities as a percentage of scheme liabilities

A one percentage point change in the assumed rate of inflation will have the following effects: Increase £m

Decrease £m

Effect on aggregate service costs and interest cost

0.5

(0.4)

Effect on defined benefit obligation

41.2

(23.2)

The Press expects to contribute a minimum of £4.2m to its defined benefit pension plans in the next financial year.

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Annual Accounts 2011

17. Post retirement medical benefits Cambridge University Press provides post-retirement medical benefits to some of its employees in the form of private health, dental care and lifetime care. The total current service cost in the year ended 30 April 2011 was £0.4m (2010: £0.2m). The US scheme was partly curtailed during 2009 creating a gain on curtailment of £2.6m. The latest valuations were carried out by the actuaries for the purpose of the annual accounts on a FRS 17 basis as at 30 April 2011.

The assumptions used by the actuaries are the best estimates chosen from a range of possible actuarial assumptions which, owing to the timescale covered, may not necessarily be borne out in practice.

The information disclosed below is in respect of the whole of the plans for which the Press is the sponsoring employer throughout the periods shown.

2011 £m

2010 £m

Present value of unfunded defined benefit obligations

(15.9)

(15.1)

Net liability

(15.9)

(15.1)

Movements in present value of defined benefit obligation

2011 £m

2010 £m

At 1 May

(15.1)

(14.8)

Current service cost

(0.4)

(0.2)

Interest cost

(0.8)

(0.9)

Actuarial (loss)/gain

(0.3)

0.6

Benefits paid

0.2

0.2

Exchange adjustments

0.5

–

At 30 April

(15.9)

(15.1)

Expense recognised in the statement of financial activities:

2011 £m

2010 £m

Charitable activities – publishing and printing services

(0.4)

(0.2)

Pension and post-retirement finance costs

(0.8)

(0.9)

Total

(1.2)

(1.1)

The total amount recognised in the Statement of Financial Activities in respect of actuarial (loss) / gain is £0.3m loss (2010: £0.6m gain).

Cumulative actuarial gains reported for accounting periods ending on or after 22 June 2002 and subsequently included by prior year adjustment under paragraph 96 of FRS 17, are £1.3m (2010: £1.6m ).

Principal actuarial assumptions (expressed as weighted averages) at the year end were as follows: < Return to Contents

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Cambridge University Press Annual Report and Accounts 2011 United Kingdom scheme

2011 %

2010 %

Discount rate

5.4

5.5

Future salary increases

–

–

9.4

9.5

2011 %

2010 %

Discount rate

5.1

5.5

Medical premium inflation assumption

8.0

9.0

Medical premium inflation assumption 2011: Reducing to 8.4% for year ended 2012, reducing to 4.4% for year ended 2013 and thereafter.

2010: Reducing to 8.5% for year ended 2011, reducing to 4.5% for year ended 2012 and thereafter.

United States of America scheme

2011 Reducing to 7% for year ended 2012, followed by reduction of 1% annually to 5% in 2014 and then remaining constant at 5%.

2010 Reducing to 8% for year ended 2011, followed by reduction of 1% annually to 5% in 2014 and then remaining constant at 5%.

History of plans The history of the retirement healthcare plans for the current and prior periods are as follows: Balance sheet Retirement Healthcare Benefits

2011 £m

2010 £m

2009 £m

2008 £m

2007 £m

Present value of scheme liabilities

(15.9)

(15.1)

(14.8)

(14.9)

(14.2)

(Deficit)/surplus

(15.9)

(15.1)

(14.8)

(14.9)

(14.2)

Experience adjustments

2011 %

2010 %

2009 %

2008 %

2007 %

0.5

6.9

2.8

(0.3)

(1.2)

Experience adjustments on scheme liabilities as a percentage of scheme liabilities

A one percentage point change in the assumed rate of inflation will have the following effects: Increase £m

Decrease £m

Effect on aggregate service costs and interest cost

–

–

Effect on defined benefit obligation

2.3

(1.9)

The Press expects to contribute approximately £0.5m to its retirement healthcare plans in the next financial year.

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Annual Accounts 2011

18. Minority interest The minority interest represents 40% of the invested share capital in Cambridge–Hitachisoft Educational Solutions PLC, 25% of the share capital in Cambridge University Press India (Private) Limited and 25.1% of the share capital in Cambridge University Press South Africa (Proprietary) Limited.

2011 £m

2010 £m

1.4

1.1

Further investment in subsidiaries

–

(0.1)

Profit for the period

0.3

0.4

Currency translation

(0.1)

–

Dividend paid

(0.1)

(0.1)

Minority interest brought forward

Issue of shares to minority interest

–

0.1

Minority interest carried forward

1.5

1.4

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Cambridge University Press Annual Report and Accounts 2011

19. Current and deferred taxation (a) Tax on net incoming resources before transfers, tax and minority interest: 2011 £m

2010 £m

Overseas tax

1.0

0.7

Tax charge

1.0

0.7

Share of joint venture’s current tax Total tax

–

–

1.0

0.7

Tax Status For tax purposes Cambridge University Press is part of the University of Cambridge and, as a result, has charitable status. It is currently exempt from taxation on income arising from its qualifying charitable activities undertaken in the United Kingdom and the majority of its principal branch locations, being Australia, Brazil, Spain, Singapore and the United States of America.

The group has a number of UK subsidiaries which are potentially subject to UK taxation on their profits, but they make tax deductible donations of their taxable profits to Cambridge University Press which has the effect of eliminating their tax liabilities.

The group’s overseas subsidiaries are all subject to taxation in their country of residence; and the group tax charge arises on the profits earned by those subsidiaries.

Deferred tax One of the Group’s overseas subsidiaries, United Publisher Services Limited, has a potential deferred tax asset of £0.9m (2010: £1.1m), of which £0.4m (2010: £1.0m) relates to Japanese tax losses which may be available to carry forward against future taxable profits, and £0.5m (2010: £0.1m) relates to other short term timing differences. This deferred tax asset, which has been calculated at the current rate of taxation in Japan of 41%, has not been recognised in these accounts.

There are no other material deferred tax liabilities or assets.

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Annual Accounts 2011

20. Funds Group 2011 £m

Press 2010 £m

2011 £m

2010 £m

Opening funds as previously stated

33.0

59.9

38.2

68.9

Prior year adjustment

(4.4)

(2.3)

(3.7)

(1.4)

Opening funds restated (before minority interest)

28.6

57.6

34.5

67.5

Net incoming resources for the year

5.8

1.7

2.0

(2.8)

Transfer of funds to the University of Cambridge

(2.2)

(1.8)

(2.2)

(1.8)

Actuarial gain/(loss)

8.3

(30.3)

8.3

(30.3)

Curreny (loss)/gain

(2.1)

1.4

(0.6)

1.9

Net addition to funds

9.8

(29.0)

7.5

(33.0)

Closing funds (before minority interest)

38.4

28.6

42.0

34.5

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Cambridge University Press Annual Report and Accounts 2011

21. Post balance sheet events Since the year end Cambridge University Press has restructured some of its smaller subsidiaries and joint ventures and before approval of the financial statements, the following events took place: Global Grid for Learning Limited (formerly Cambridge Global Grid for Learning Limited) On the 21 July 2011 GGfL: 1. allotted 1,406,091 ordinary shares of £1 each and issued them to the Syndicate of the Press of the University of Cambridge on behalf of the Chancellor, Masters and Scholars of the University of Cambridge (“CUP”), credited as fully paid, in conversion of a loan to GGfL of £1,406,091; 2. approved the transfer of 2 ordinary shares in GGfL from Cambridge University Press (Holdings) Limited to CUP; and 3. approved the transfer of 1,406,093 ordinary shares in GGfL (the entire share capital) from CUP to VIP Tone Inc in consideration of VIP Tone Inc providing CUP with a convertible promissory note for $1,000,000, or 1,000,000 common stock shares, or certain C Preferred stock of VIP Tone Inc. Cambridge-English360 Limited On 15 August 2011 Cambridge University Press (Holdings) Limited disposed of its investment in Cambridge-English360 Limited to English360 Inc. Under the terms of the disposal agreement intellectual property previously held by Cambridge-English360 Limited was transferred to Cambridge University Press (Holdings) Limited for a value of £1.1m to set against the loan receivable from Cambridge-English360 Limited. The remaining loan was capitalised as ordinary shares and the full shareholding was disposed of to English360 Inc. for nil consideration.

HOTmaths On 4 August 2011 an additional investment was made in HOTmaths PTY Limited of 2,389 ordinary shares, which were purchased for AUD $2m (£1.4m). This increased the shareholding to 55%.

Other items On 29 July 2011 the Stephen Perse Sixth Form College, Cambridge took up the option at the end of three year lease to buy the Fitzwilliam building from the Press. The building was sold for £3.5m at a profit of £1.4m.

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Cambridge University Press is one of the world’s leading publishers of books and journals on climate change.

We are committed to reducing our impact on the environment and have been among the pioneers both of electronic books and of short-run printing to reduce waste and shipping. Our UK operation has been certified to ISO 14001, the environmental management standard.

Printed in the United Kingdom, 2011, on 9Lives 80 Silk, which contains 60% post-consumer de-inked pulp FSC certified, 20% FSC certified virgin TCF fibre and 20% recycled wood and fibre sourced from sustainable forests.

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